BREAKING: Guvamatanga Exposed in $60 Million Scandal — Leaked Letter Shows Finance Secretary Compromised Treasury to Guarantee Shady Private Loan
Harare, 17 April 2025 — Zimbabwe’s Permanent Secretary for Finance, George Guvamatanga, has been exposed in a potentially explosive corruption scandal after a leaked government letter revealed he personally committed $60 million in public funds to guarantee a questionable $20 million private loan.
The letter, dated 24 March 2025 and addressed to Ecobank Zimbabwe, shows Guvamatanga acting on behalf of the Ministry of Finance to guarantee loan repayments for Valley Seeds (Private) Limited, a shadowy private company. The Ministry commits to pay $5 million per month over 12 months — totaling $60 million, three times the actual loan amount.
…………..
In the letter, Guvamatanga writes:
“MOF do hereby irrevocably guarantee and bind ourselves to the said Bank as sureties and co-principal debtors for the repayment on demand of all such sum or sums of money as Valley Seeds (Private) Limited hereafter will owe under the above mentioned facility…”
The Ministry goes even further, promising:
“MOF irrevocably undertakes to expunge the above Legacy Debt at a rate of USD 5,000,000.00 (Five Million United States Dollars) monthly…”
Even more shockingly, Guvamatanga authorizes Ecobank to directly debit government funds if Valley Seeds defaults:
“MOF hereby grants Ecobank the right to directly debit an amount of up to USD5,000,000.00… from the MOF if there are any delays in receipt of the Legacy Debt payments…”
“This Is Stinking Corruption”
Prominent activist Jealousy Mawarire condemned the deal, declaring:
“This is stinking corruption… Why is the Ministry of Finance paying $60 million for a $20 million loan? Does it therefore imply that Ecobank is making a profit of $40 million from a structure where they outlaid $20 million?”
He also questioned why such a deal was signed outside the Public Debt Management Act, without Parliament’s approval:
“All Gvt Loans and guarantees should be subject to the Public Debt Management Act and Parliament should be informed at all times.”
Why Is Guvamatanga the Sole Executor?
Guvamatanga’s name is the only one on the letter. He signs off the deal alone, stating that he has been authorized to:
“…represent the Ministry and sign this document and give effect to the above said arrangement until the facility has been paid in full.”
@mawarirej Mawarire blasted this setup, asking:
“Why would the Ministry appoint Guvamatanga… to be the principal executor in a private transaction? If everything is transparent, why can’t future Finance Permanent Secretaries uphold the same deal?”
Serious Red Flags
This arrangement has triggered widespread alarm for several reasons:
•Public funds are backing a private entity with no clarity on ownership or public benefit.
•The Ministry promises immunity from future policy changes, shielding the deal from incoming administrations.
•There is no evidence Parliament approved this guarantee, as required by law.
•The deal commits taxpayers to pay triple the loan value, without explanation.
The letter states that “all facility fees will be borne by Valley Seeds,” but with the Ministry essentially covering the entire $60 million, this clause appears meaningless.
Who Is Valley Seeds?
Despite being listed in Treasury books as holding over $191 million in “legacy debt”, Valley Seeds remains an opaque, private firm with no known public profile. Its strategic importance remains unexplained.
With Zimbabweans reeling from inflation, unemployment, and public sector collapse, the revelation that the Treasury is secretly backing a private firm’s debts with $60 million in taxpayer money has triggered urgent calls for investigation.
⸻
More to follow as we trace the money and the people behind Valley Seeds.