Zimbabwe minister admits SA house

The minister is presiding over a severe recession

Zimbabwe's finance minister has denied violating the country's foreign currency laws by buying a luxury mansion in Cape Town in South Africa.

Chris Kuruneri said he used money earned from private consultancy outside Zimbabwe before he became a minister, to purchase the luxury residence.

Under the currency laws, money earned outside the country does not have to be repatriated to Zimbabwe.

Mr Kuruneri says the mansion costs $1m and not a reported $7m.

Economic crisis

Media reports in South Africa had alleged that the minister had violated the country's laws by investing in a real estate venture.

The central bank in Zimbabwe began introducing new financial measures in December that it said were aimed at fighting high-level corruption.

"I have not been in violation of any Zimbabwean laws," said Mr Kuruneri.

Zimbabwe is suffering from its worst economic crisis since independence in 1980 - an estimated 70% of the population is living in poverty.

The European Union and United States have imposed sanctions on President Robert Mugabe's government.

South Africa has been trying to broker talks between the ruling Zanu-PF and the opposition Movement for Democratic Change (MDC).

Both the Commonwealth and the European Union see talks between Mr Mugabe's Zanu-PF party and the opposition MDC as a way out of Zimbabwe's political and economic crisis.