I loaned Mugabe R60m, says British tycoon

Published Jan 14, 2006

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A controversial British property tycoon has landed in hot water after publicly claiming that he loaned President Robert Mugabe $10-million (about R60-million) late last year.

Nicholas van Hoogstraten made his claims in the London Sunday Times last week. But Mugabe has angrily rejected the accusations and the businessman, who commands a huge business empire in Zimbabwe and elsewhere.

He faces the spectre of losing his businesses in the country if Mugabe opts to deal with him in the same way he has dealt with other "unwanted" business owners.

Van Hoogstraten told the paper that he had advanced the loan to Mugabe in November. He claimed the security for the credit was in assets worth trillions of Zimbabwe dollars.

It is not clear what prompted Van Hoogstraten to go public about the loan, if it is indeed true.

"In six months' time, when the interest is due, it would be cheaper for them to just kill me," he told the paper. "I think I'm of more use to the government in Zimbabwe alive.

"The people (of Zimbabwe) would probably prefer me to be their president." It appeared the supremely wealthy but controversial Van Hoogstraten has some form of documents relating to the loan.

Although a majority of Zimbabwe's white farmers have lost their land, Van Hoogstraten was one of the few to retain vast tracts of land. He describes Mugabe as an "English gentleman" who is "100 percent decent and incorruptible".

Van Hoogstraten has branded other white farmers in Zimbabwe "white trash" and openly supported Mugabe's land seizures. He is a key contributor to Zanu-PF.

When the London High Court acquitted him of murdering a business rival, Mohammed Raja, in 2004, Van Hoogstraten claimed Mugabe had been the first to call and congratulate him. He has, however, since lost a civil suit in the murder of Raja and been branded a "murderer" by the civil court.

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