Documents obtained by NewZimbabwe.com have unveiled an ambitious but dubious proposal by Indian businessman Ashok Jain, aimed at securing over US$100 million from the Zimbabwean government through what appeared to be a highly speculative deal. Jain, who is the proprietor of NV Distilleries and Breweries, approached the Reserve Bank of Zimbabwe (RBZ) with a proposal that promised substantial economic benefits for Zimbabwe but raised eyebrows due to its unrealistic demands and questionable assurances.
In his communication with the then RBZ Governor John Mangudya, Jain submitted a Letter of Intent detailing his plans to establish an ethanol plant comparable to Billy Rautenbach’s successful Greenfuel venture. The proposal wasn’t just about producing ethanol; it ambitiously included the production of poultry feed, power generation, and fertilizer manufacturing. However, Jain’s demands were far from modest: he requested 6,000 hectares of land near a sizable dam, spanning at least 200 hectares, free of charge. Additionally, he sought exemption from all import duties and levies for the machinery and equipment necessary for his project.
The audacity of Jain’s demands did not stop there. He sought a repayment plan for any buildings constructed on the provided land within a five-year frame and proposed a staggering line of credit of ‘approximately’ US$100 million, which he suggested could extend to US$165 million, allegedly facilitated by the Indian government.
Jain touted the project as a significant employment creator, claiming it would hire more than 3,000 people both directly and indirectly, and would notably enhance Zimbabwe’s Gross Domestic Product (GDP). Despite the seemingly lucrative proposal, the Reserve Bank of Zimbabwe exercised caution. A letter from the Zimbabwe Investment Development Agency (ZIDA) dated May 18, 2022, showed approval for the venture, now valued at US$125 million. However, RBZ flagged the project due to discrepancies in the proposed financial arrangements.
Governor Mangudya pointed out the lack of any credit facility deal between the Zimbabwean and Indian governments. Furthermore, Mangudya highlighted Jain’s assertion of being able to personally inject US$97,850,000 into the project over three years, questioning the necessity of government financing under such conditions. Jain’s proposal did not align with RBZ’s financial policies or Zimbabwe’s economic interests, leading to a diplomatic rejection of the proposed standby letter of credit valued at US$125 million.
Aside from the controversial business proposal, Jain has faced criticism for purportedly misrepresenting his connections and influence. He is accused of exploiting a photograph taken with Zimbabwe’s President Emmerson Mnangagwa to exert pressure on local stakeholders. The photo opportunity, facilitated by Minister of State for Presidential Affairs Joram Gumbo, has become a point of contention, especially following revelations of Jain’s past arrest for smuggling in India and allegations regarding his mental stability.
Jain’s claim to being a top-ranking official in India’s Bharatiya Janata Party (BJP) has also been scrutinized, as the position he refers to is held by Rajnath Singh, casting doubt on Jain’s credibility and intentions.
The unfolding story surrounding Ashok Jain’s proposal and subsequent interactions with Zimbabwean officials paints a complex picture of international business dealings, laden with ambitious promises but plagued by questionable claims and dubious intentions. The case serves as a cautionary tale about the challenges and risks inherent in cross-border investments and the importance of thorough due diligence and transparency in government and business transactions.
Source: New Zimbabwe
