IDC loses $71m in glass-making deal

THE Industrial Development Corporation (IDC) has failed to recover $71 million from the Romanian government 14 years after the Zimbabwe partnered the European country in a glass-manufacturing deal that failed to materialise, an official has said.

Business Reporter

IDC and Romsit, a Romanian parastatal, entered into a deal to manufacture glass sheets.

IDC spokesperson Derrick Sibanda in an interview yesterday, said the $62 million was for the expropriation of the company’s rights while $9 million was for interest charges.

“We have lost money as a company since 1999, so the $62 million is for the expropriation of our rights as shareholders. Romsit failed to provide the appropriate technology for the manufacturing of glass sheet for IDC unit National Glass in Kadoma,” he said.

Sibanda said Romsit South Africa has been ordered to pay $4,2 million by the 1999 determination by the Paris-based International Court of Arbitration for failure to comply with the terms.

He said the figure was up to $9 million due to interest charges.

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