Posted on 04/13/2002 3:13:38 AM PDT by Clive
Libya threatens to cut fuel supplies over debt
Daily News (Zimb)
Date posted:Sat 13-Apr-2002
Date published:Fri 12-Apr-2002
"The Libyans turned this proposal down, saying they would only accept Zimbabwean beef if the European Union resumed beef imports from the country"
By Sandra Nyaira Political Editor
President Mugabe is back in Harare after a four-day working visit to Libya. Sources say he was scouting around for assistance to ease Zimbabwe's worsening economic crisis following a threat by President Muammar Gaddafi to cut the fuel life-line over non-payment of bills by the Harare government.
Diplomatic sources told The Daily News that Libya and most of the companies supplying Zimbabwe with fuel had threatened to discontinue supplies. The arrangement between Libya and Zimbabwe was only a stop-gap measure but, the sources said, Gaddafi, one of Mugabe's closest allies, had threatened to cut fuel supplies to Harare following the government's failure to pay.
"Mugabe had first indicated that he wanted to pay through a barter deal in exchange for beef since the country faces a serious foreign currency problem," one well-placed source said. "The Libyans turned this proposal down, saying they would only accept Zimbabwean beef if the European Union resumed beef imports from the country."
Mugabe departed for Tripoli as talks between Zanu PF and the MDC kicked off on Monday.
Mugabe has been increasingly isolated by the world in the wake of his controversial victory in last month's presidential election amid reports that Zimbabwe is virtually mortgaged to Libya in exchange for oil and money.
The Libyans are said to have been allocated farms by the government. No official comment could be obtained from the Libyan ambassador, Mahmoud Azabi, who was said by his office to be out of the country.
Reports in the State-controlled Herald yesterday said Libya was now providing 70 percent of Zimbabwe fuel imports. A 12-month US$330 million (Z$18,15 billion) oil deal signed by Mugabe and Gaddafi last year for Libya to supply Zimbabwe with oil expires in two months' time and Mugabe was reportedly anxious to secure an extension to avert another crisis in the tense period after the presidential poll.
"The bottom line is that Libya has been unable to get the products promised by Mugabe when the deal was sealed," another source said. "That is why Mugabe had to go and plead with Gaddafi."
The deal, under which Gaddafi supplied oil in exchange for land, agricultural produce and stakes in key enterprises in the tourism sector, helped Mugabe reduce the magnitude of the crippling fuel crisis which started in October 1999.
With the exception of Gaddafi, the rest of the world's suppliers had stopped oil supplies to Zimbabwe due to non-payment.
Gaddafi, who has emerged as Mugabe's key foreign ally, described Mugabe's disputed win in the presidential election as a "victory for Africa" at a dinner organised for Mugabe during the trip.
Mugabe is increasingly being isolated on the international scene over his controversial re-election and repressive rule.
The Minister of Mines and Energy, Edward Chindori-Chininga, last month went on a whirlwind tour of the world as he tried to secure more fuel for the country to no avail.
The Libyans are said to have been allocated farms by the government. No official comment could be obtained from the Libyan ambassador, Mahmoud Azabi, who was said by his office to be out of the country.He's down on the farm, checking out his new spread, the lifestock, the nubile young african slave-boys, all had at firesale prices.
Verrrrry intersting!
Me thinks the Ministers are panicking.
Hang tough Tsvangirai.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.