Eric Bloch says inflation chewed funds for the Matabeleland Zambezi Water Project

Renowned economist, Eric Bloch whose company managed funds collected by the Matabeleland Zambezi Water Project (MZWP) Limited has said the funds were chewed by the run away inflation that hit the country at the time.
In an interview Bloch cleared his name by saying, "It is indeed true that my company managed the funds from the MZWPLimited. What happened is that after shares from the money had been sold, we raised $2,5 million Zimbabwe dollars that we put in a building society.
After that nothing happened to the money until it was affected by the slashing of zeros from the country's currency. At first, nine zeros were slashed followed by four zeros and subsequently another 12 zeros.When yuou sklash 25 zeros from 2,5 milliion you remain with nothing and thatis the situation that unveiled itself with regard to the investment by shareholders who bought shares in the MZWP Limited."
The project,which was designed to end teh water woes in Matebeleland, has been on the drawing board for over 90 years.
The revelation comes amid lack of clarity on how the funds collected from government, the Reserve Bank of Zimbabwe (RBZ), the Bulawayo City Council, and Bulawayo residents, amongst other stakeholders, was expended.
Hundreds of thousands of dollars in foreign currency as well as billions of Zimbabwean dollars was harnessed by the Matabeleland Zambezi Water Project (MZWP) board with the aim of funding the construction of the Gwayi-Shangani dam.
The dam was viewed as the mainstay of the entire project.
Speaking at a consultative meeting held in Bulawayo Thursday, regional agro-economist, Fanuel Sibanda, who was part of the group that established the MZWP, told government ministers and Bulawayo residents Bloch was the custodian of the funds.
"Most of you have been saying a lot of things about the issue of money raised by the Matabeleland Zambezi Water Project Limited.
"I can safely tell you that the funds raised by the limited through sale of shares in that company was given to Eric Bloch who was expected to manage the funds," said Sibanda.
He revealed that Bloch, through his business acumen, was expected to invest the money so that it would not lie idle in the company's accounts.
"There was an agreement that Bloch, as an economist, would know how to have the money invested. However, most of the people who made investments and bought shares in that company do not know where the funds went to besides Eric Bloch," Sibanda added.
Sibanda also revealed that the MZWP got varying amounts of money from the Reserve Bank of Zimbabwe-monies he said were not handed over to the project administration.
"There are funds that the project got from the RBZ. Some of the funds came as loans under the various RBZ schemes. It is pretty difficult now to tell what happened to those funds," Sibanda added.
He castigated some whom he accused of wanting to be viewed as angels who deserted the project when it was undergoing major challenges.
Responding to questions from the floor and Sibanda's comments, Water Resources Development and Management minister, Samuel Sipepa Nkomo told the conference the funds raised through the MZWP Limited had been chewed away by inflation.
He also confirmed Bloch had been appointed as the custodian of the funds.
"I raised this issue with Bloch and (Dumiso) Dabengwa. I had gotten wind of it and I confronted both of them and asked them to explain what had happened.
"Dabengwa has told me his hands are clean on the issue of handling of funds as he has audited accounts for the funds he managed. As for the other funds, Bloch has told me categorically clearly that the funds were chewed away by inflation," said Nkomo, much to the chagrin of the participants.
Added Nkomo: "We have asked the RBZ to furnish my office with documentation on what they gave to MZWP. I am glad to say that they have since given my office an inventory of funds they released, both in Zimbabwean dollar terms and in foreign currency. All that we are now doing is that we are carrying out an audit of these funds so that we get to the bottom of all this."
The stakeholders consultation meeting was attended by several ministers, government officials, and Bulawayo residents.-