Zimbabwe's dealings with Gaddafi to be reviewed

Sacked Libyan envoy Taher Elmagrahi has convinced the National Transitional Council (NTC) to review all commercial deals between Zimbabwe and Muammar Gaddafi's regime after submitting a dossier on the dodgy deals.

Through his first counsellor, Mohammed Elbarat, the diplomat indicated that millions of dollars' worth of agricultural, mining, petroleum and tourism projects might be annulled, as there was suspicion that they were personal transactions.

"The NTC will investigate whether state funds were not abused by the Gaddafi family for amassing wealth in Zimbabwe," he said.

He added that the interim leadership had been asked to cancel the deals, since President Robert Mugabe's government did not recognise the new administration.

"These deals were not done in good faith and we want the NTC to investigate them because we do not have documentation to follow . on who benefited and for what purpose," Elbarat said.

The North African state's investments in Zimbabwe, include a 14% stake in CBZ Holdings Limited, a small portion of Rainbow Tourism Group and other unlisted assets.

While the RTG stake is registered under the Libya Arab-Africa Investment Company, the 97 million parcel of CBZ shares is registered under the Libyan Foreign Investment Bank, which is listed as the second largest investor after Mugabe's administration.

However, bank chief executive Nyasha Makuvise dismissed any potential threats or disruption to the Zimbabwe Stock Exchange-listed financial group.

Apart from banking assets, Gaddafi's stricken regime sought to grab further deals and contracts in real estate, farming and tourism, with his closest son and economic point man Saif visiting the country last year on a business trip.

As the deals and secretive transactions are in limbo now, a cabinet minister said Zimbabwe remained unaffected by the NTC's planned action, as Saif's visit was just an exploratory trip.

Ever since rebels launched an assault on Gaddafi's seat of power under a western-backed initiative seven months ago, several global and African governments, including South Africa, have ordered a freeze of his international assets.

In March, President Jacob Zuma's administration froze Libyan investments, including a major stake in Ensemble Holdings Limited, owner of Johannesburg's plush Michelangelo hotel and apartments.

Pretoria said the portfolio was held under The Libyan Arab African Investment Company and other opaque structures.

The companies also represent the oil-rich nation's $70 billion sovereign wealth fund.

On the other hand, Uganda also froze $400 million worth of assets in its banking, energy, hospitality and telecommunications sectors.