In March, Gadaffi announced plans for single a African identity and a union under which the boundaries between states would be scrapped, national armies merged and a single passport introduced. Amazingly, this vision seems to have been largely accepted by African leaders. It has also been decided that, besides the parliament, there will be a pan-African court of justice, a central bank and a common currency. Clearly with the aim of flattering Thabo Mbeki, the South African president, Gadaffi has proposed that the first AU summit should be held in Pretoria next year and should elect a president - presumably Mbeki. ***
11-07-01 - It looks like Gadaafi already has his foot in the door--[Excerpt] Harare: Zimbabwe- Libya's President Muammar Gadaafi has bought up 20 houses in Zimbabwe which seem likely to be used as safe-houses for death squads supplied by the Libyan dictator as part of his plan to assist the man he sees as his embattled comrade in arms, President Robert Mugabe. In addition Gadaafi has bought Gracelands, the gigantic Harare mansion belonging to Grace Mugabe, the President's young wife. The house is now to become the Libyan Embassy, making it by far the biggest embassy building in Zimbabwe, dwarfing the British and American missions.
In effect Gadaafi seems to be making a bid to save Mugabe which, if successful, would create a virtual Libyan client state at the far end of Africa. Already there is evidence of direct Libyan involvement in the violence which racked Zimbabwean farms in the last ten days.
Relations between Mugabe and Gadaafi have been warm for some time but it is only in the last year, as Zimbabwe's shortage of foreign exchange has caused repeated fuel cut-offs that Mugabe has several times flown to Tripoli to plead with Gadaafi for deliveries on credit. Gadaafi, who has despaired of his efforts to play a leadership role in the Arab world, has begun to use his financial muscle to make interventions right across black Africa where he has made Zimbabwe a special case, advancing Mugabe a loan of $100 million. [End Excerpt]
April 2002 - -- Libya threatens to cut fuel supplies over debt*** 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. ***
May 2002 - Libya pulls Zimbabwe's fuel plug***Libyan demands that the Mugabe regime hand over valuable farms as part of the deal have yet to be met, prompting fears from fuel-hungry consumers that the north African country will soon grow impatient with Zimbabwe. It is understood that groups of Libyan businessmen have been to Zimbabwe and visited vast commercial farms around the country. Libyan leader Muammar Gaddafi also toured some big commercial farms and identified some for his country's expropriation last year.
However, the mechanics of delivering this land to the Libyans seem to have been delayed, prompting cries of impatience from the Libyans. Zimbabwe is now so heavily reliant on the Libyans that the country will cease to function if Gaddafi puts brakes on oil supplies. Mugabe has paid a dozen visits to Libya in the past year to maintain Gaddafi's patronage. Opposition leader Morgan Tsvangirai says Zimbabwe has virtually become a "colony of Libya". Libya's cut supplies have only been resumed after interventions at the highest level.***
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Now look at who's the latest beneficiary of Gaadafi's largess --Source: Central Bank of Venezuela -Caracas proposed an emergency fiscal adjustment package May 30 that was designed to cut government spending and raise revenues. So far, this package has been a dismal failure. Proposed tax hikes are languishing, and multilateral agencies have refused to lend, forcing Chavez to seek a $5 billion bridge loan from Libya, sources say. Attempts to refinance Venezuela's debt have been equally unsuccessful, primarily because domestic and foreign investors are wary of the risk. Caracas was able to raise only around $4 million, or 10 percent of its goal, in a late-June auction of two-month treasury bills.***