'Ex-UK minister met Chinamasa just before $1,1 billion bail-out plan'

FORMER United Kingdom Business minister Peter Mandelson met Finance minister Patrick Chinamasa in Harare five months ago where the Labour peer works sought to help the regime borrow $1,1 billion, The Telegraph disclosed.

Mandelson, who chairs Lazard International, a division of the investment bank Lazard, visited Zimbabwe in February when he met Chinamasa. On July 6, Chinamasa held what he called "marathon meetings" with Lazard and another bank in London on a $1,1b loan.

But, Mandelson has denied his visit was in any way linked to Lazard's proposed bail out.

However, the timing of his meeting is likely to raise questions as within Zimbabwe the deal is highly controversial. A spokesman for Mandelson said he was "not playing nor has he played any role in advising the Zimbabwean government either through Lazard or any other interest".

The spokesman described the purpose of Mandelson's trip to Zimbabwe as being instead to meet "representatives of the business community and civil society to encourage them to continue the process of reform".

Catriona Laing, the British Ambassador in Zimbabwe, arranged his appointment with Chinamasa and accompanied Mandelson to see the minister. Sources said this meeting did not take place on behalf of Lazard, nor did it lead to any introductions. Unable to pay civil servants or run its own ministries, President Robert Mugabe's regime is desperately trying to raise $1,1bn to settle its arrears with the World Bank. This would, in turn, open the door to a bailout from the International Monetary Fund.

Lazard is understood to be working with Afreximbank, a Cairo-based bank, to raise the loan.

Chinamasa told Zimbabwe's official media that his talks in London "centred on the strategy which they have committed to putting together for us on the arrears due to the World Bank".