‘TER­MI­NATE CHIVAYO TEN­DER’ Dis­solve Zesa, ZPC boards im­me­di­ately, Parly Com­mit­tee

Chronicle (Zimbabwe) - - Front Page - Aux­ilia Ka­ton­go­mara Chron­i­cle Reporter

THE Zim­babwe Power Com­pany must im­me­di­ately ter­mi­nate it’s con­tract with In­tra­trek as one of its di­rec­tors, Mr Wick­nell Chivayo, has a crim­i­nal record and does not qualify to be a man­ag­ing direc­tor of a com­pany reg­is­tered in Zim­babwe, leg­is­la­tors have said.

The Par­lia­men­tary Com­mit­tee on Mines and En­ergy’s re­port after con­duct­ing hear­ings on the Gwanda So­lar Project rec­om­mended that power gen­er­a­tion ten­ders should be awarded on merit.

ZPC en­tered into a con­trac­tual agree­ment with In­tra­trek Zim­babwe and its tech­ni­cal Part­ner, Chint Electric Com­pany on Oc­to­ber 23, 2015, and the to­tal project cost was es­ti­mated at just over $183 mil­lion.

The com­mit­tee chaired by Nor­ton leg­is­la­tor, Mr Temba Mliswa, says dur­ing dif­fer­ent oral ev­i­dence ses­sions with ZPC and Mr Chivayo, the Com­mit­tee learnt that a sum of $5 644 130.80 for pre-com­mence­ment works was re­leased by ZPC to In­tra­trek, with­out a bank guar­an­tee and the en­tire amount was re­leased within a pe­riod of six months from December 2015 to July 2016.

The Com­mit­tee said the ten­der to In­tra­trek needs to be re­scinded in light of vi­o­la­tions of the Com­pa­nies Act and the re­pealed Pro­cure­ment Act. “ZPC should ter­mi­nate the con­tract with In­tra­trek given that that Mr Chivayo has a crim­i­nal record and does not qualify to be a man­ag­ing direc­tor of a reg­is­tered com­pany in Zim­babwe. ZPC must take over the Project,” read the re­port.

The re­port says ZPC of­fi­cials even ac­knowl­edged that the works on site were not com­men­su­rate with the pay­ments.

“The Com­mit­tee ob­served the fol­low­ing de­vel­op­ments on site: two tem­po­rary hous­ing struc­tures and par­tial clear­ing of the ground.

“The fol­low­ing work for which pay­ments had been re­leased and not yet com­pleted in­cluded: a de­cent access road, ba­sic ablu­tion fa­cil­i­ties, com­mu­ni­ca­tion net­work, elec­tric­ity, wa­ter sift­ing and bore­hole drilling and stor­age,” read the re­port.

The com­mit­tee said Mr Chivayo failed to get a bank guar­an­tee be­cause of his crim­i­nal con­vic­tion. “At the same time it bog­gles the mind why Mr Chivayo failed to get a bank guar­an­tee from his tech­ni­cal part­ner Chint Electric, which he boasted was a multi-mil­lion dollar com­pany with a foot­print across the globe,” read the re­port.

The com­mit­tee said the Zesa Hold­ings Board and the ZPC Board should im­me­di­ately be dis­solved for lack of good cor­po­rate gov­er­nance in its struc­tures. “The Min­is­ter of En­ergy and Power De­vel­op­ment needs to ap­point a new Board (s) for the en­tity, which is pro­fes­sional and has the req­ui­site skills con­sid­er­ing is­sues of gen­der and re­gional rep­re­sen­ta­tion.

“Ten­ure of Boards should go in line with the life of Par­lia­ment to al­low con­ti­nu­ity of over­sight work,” read the re­port. The Com­mit­tee found the Zesa Board and man­age­ment neg­li­gent in su­per­in­tend­ing over the projects be­ing un­der­taken by their sub­sidiary com­pany.

It also rec­om­mended that the Zim­babwe Republic Po­lice should con­duct an in­ves­ti­ga­tion on Min­is­ters and deputy Min­is­ters im­pli­cated in the scan­dal at the Gwanda So­lar Project.

“The money paid to In­tra­trek should be re­cov­ered after investigations are con­cluded. The Au­di­tor Gen­eral should con­duct a value for money au­dit to de­ter­mine the losses that govern­ment may have suf­fered through this con­tract,” reads the re­port.

The Com­mit­tee said it also noted with concern that there was bad blood be­tween the share­hold­ers in In­tra­trek. Mr Bruce Tokwe, a lawyer rep­re­sent­ing one of the share­hold­ers Mr Yusuf Ahmed told the Com­mit­tee that Mr Chivayo was no longer a share­holder in the com­pany be­cause he ceded his shares against a loan he had bor­rowed.

“It was abun­dantly clear to the Com­mit­tee that ZPC has no rea­son to con­tinue do­ing busi­ness with a com­pany that was frac­tured and dys­func­tional,” said the Com­mit­tee.

The Com­mit­tee said it had noted that there was dis­cord be­tween the ZPC Board and the Man­age­ment as it emerged dur­ing hear­ings that the man­ag­ing direc­tor, Mr Noah Gwariro, re­leased over $5,6 mil­lion for pre-com­mence­ment works with­out the knowl­edge of the Board.

“Se­condly, the man­ag­ing direc­tor was given le­gal ad­vice by the Board Sec­re­tary of ZPC on the de-mer­its of en­gag­ing In­tra­trek given the pre­vi­ous con­vic­tion of its direc­tor Mr Chivayo. In­stead the man­ag­ing direc­tor acted against the le­gal ad­vice and en­gaged In­tra­trek as its con­trac­tor,” reads the re­port.

“Fur­ther­more, the Com­mit­tee was in­formed that the man­ag­ing direc­tor acted with­out con­sult­ing the board be­cause of pres­sure from politi­cians that in­cluded former Min­is­ters of En­ergy, Mr Dzika­mai Mavhaire, Mr El­ton Man­goma, Mr Mu­na­cho Mutezo and Dr Sa­muel Un­denge”.

How­ever, Mr Mutezo, who ap­peared be­fore the Com­mit­tee, de­nied ex­ert­ing any in­flu­ence to ad­vance the in­ter­est of Mr Chivayo.

The Com­mit­tee said there was con­flict of in­ter­est by the ZPC Board Chair­man En­gi­neer Stan­ley Kazhanje in his in­volve­ment in the Gwanda so­lar project as he had a work­ing re­la­tion­ship with In­tra­trek where he pro­vided tech­ni­cal ser­vices to the com­pany on sep­a­rate power projects through his own com­pany Ter­mi­nal En­gi­neer­ing Pvt Ltd.

The Com­mit­tee said it was dis­ap­pointed to learn from the Per­ma­nent Sec­re­tary of En­ergy and Power De­vel­op­ment, Mr Part­son Mbiriri, that In­tra­trek had re­turned on site to com­plete the pre­com­mence­ment works .

“The rea­sons for In­tra­trek’s re­turn were that ZPC was try­ing to re­duce its fi­nan­cial ex­po­sure and se­condly the con­tract be­tween the par­ties had not been ter­mi­nated. The of­fi­cials from Zesa Hold­ings even had the au­dac­ity to thank the Com­mit­tee through its in­quiry on the mat­ter that this had ex­erted a lot of pres­sure on the con­trac­tor to ful­fill its part of the bargain,” read the re­port.

The com­mit­tee rec­om­mended that reg­u­lar in­spec­tions should be con­ducted on na­tional projects to as­sess progress and for pur­poses of tak­ing cor­rec­tive ac­tion and that Pub­lic En­ti­ties should en­sure that they ex­pend fi­nan­cial re­sources pru­dently. — @Aux­il­iaK THE Zanu-PF lead­er­ship in Masvingo has mo­bilised more than 50 000 peo­ple for Pres­i­dent Mnan­gagwa’s rally at Mucheke Sta­dium on Fri­day.

Pro­vin­cial chair­man Cde Ezra Chadza­mira said the Pres­i­dent’s visit was a cru­cial one as it was go­ing to in­vig­o­rate the party ahead of the July 30 election.

“We have mo­bilised more than 50 000 sup­port­ers for Pres­i­dent Mnan­gagwa’s visit on Fri­day,” said Cde Chadza­mira.

He said Zanu-PF was poised for a land­slide vic­tory and the lead­er­ship wanted to demon­strate to Pres­i­dent Mnan­gagwa that there was unity in the province and the mem­ber­ship was ready for the polls.

“We ex­pect Masvingo to roar on Fri­day as we welcome our icon. We have ev­ery­thing in place and can­not wait for this im­por­tant day. He will tour Mashava Mine and Cold Stor­age Com­pany be­fore a rally at Mucheke where a full house is ex­pected.

“We also have re­ceived enough party re­galia for our mem­bers as we want to show the world that Masvingo is a one party province. We are not both­ered by other po­lit­i­cal char­la­tans who think that they will win seats in Masvingo. Peo­ple know that we are the only party with them at heart as a num­ber of de­vel­op­men­tal projects have been done for the peo­ple in Masvingo. This in­cludes the Tokwe-Mukosi Dam from which 25 000 hectares will be put un­der ir­ri­ga­tion,” Cde Chadza­mira said.

Masvingo ur­ban Na­tional Assem­bly can­di­date Re­tired Ma­jor Taguma Ben­jamin Mazarire said the First Sec­re­tary and Pres­i­dent of the party’s visit comes at the right time when cam­paign­ing for the elec­tions has reached fever pitch .

“We are happy to host our Pres­i­dent at this cru­cial time of cam­paign­ing. His visit will ig­nite more fire within us can­di­dates as we look for noth­ing short of vic­tory in my con­stituency and oth­ers in the province. I urge all mem­bers to come in their num­bers to lis­ten to our im­por­tant guest,” he said.

The Bu­l­awayo City Coun­cil is not happy with res­i­dents who take the cover of dark­ness and burn garbage at un­des­ig­nated places es­pe­cially in the west­ern sub­urbs caus­ing air pol­lu­tion. The pic­ture shows a man burn­ing garbage at night in New Mag­wegwe at an...

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