The Emmerson Mnangagwa led government breached an agreement with the Chinese after allegedly looting from an escrow account containing funds for the expansion of the Robert Mugabe International airport.
Chinese Financial Institutions have been developing the RMI Airport along with the Hwange refurbishment project and the NetOne expansion project.
In an article published by the Independent, the Chinese suspended the three big infrastructural projects funding totalling US$1,324 billion after government diverted US$10 million from an escrow account.
The terms and conditions of the loan given to the government by Chinese Financial Institutions towards upgrading the Robert Mugabe International airport runs to a period of 20 years with a grace period of 7 years at an interest rate of 2% per annum.
Authorities from the Chinese Embassy revealed that the Mnangagwa government did not return the money even after negotiations and complaints were made.
The development has led to the suspension of further funding of the projects by the Chinese Financial Institutions.
