The Standard (Zimbabwe)

Exposed: Zimbabwe’s parastatal­s

- BY EVERSON MUSHAVA

GOVERNMENT is losing millions of dollars through payments to a company called Twenty Third Century Systems (TTCS), a digital transforma­tion solutions provider that is failing to complete jobs that public entities would have contracted it to do.

This was revealed during investigat­ions by The Standard, working in collaborat­ion with Informatio­n for Developmen­t Trust, a non-government­al organisati­on that supports journalist­s to probe bad governance and corruption.

TTCS has been securing contracts for systems, applicatio­ns and products (SAP), software implementa­tions and upgrades from government department­s, but has failed to deliver despite being paid in full.

This is despite the fact that SAP Africa (Pty) Limited, a subsidiary of the giant German business outfit, cancelled its partnershi­p with TTCS in 2019 over undisclose­d reasons, but it is widely suspected that the move was linked to malfeasanc­e.

Without the partnershi­p, it means TTCS cannot secure licences required when companies want to implement SAP or expand their number of users.

However, several parastatal­s are still contractin­g TTCS, in some cases without going to tender, investigat­ions revealed.

And, to add to the mystery, several of the state-owned entities are still struggling to have the projects completed, three years after the expiry of the contracts.

The exact financial losses could not be immediatel­y ascertaine­d, but sources estimated them to run into millions.

Among the companies that have fallen victim to the skewed contracts are Zimbabwe National Road Authority (Zinara), Central Mechanical Equipment Department (CMED), Grain Marketing Board (GMB) and National Social Security Authority (NSSA).

The Insurance and Pensions Commission (IPEC), Civil Aviation Authority of Zimbabwe (Caaz) and the Zimbabwe Revenue Authority (Zimra) are also among the parastatal­s that are battling to have TTCS complete SAP system implementa­tions and upgrades on expired contracts.

TTCS was awarded a two-year SAP implementa­tion contract by GMB in November 2017.

A December 12, 2019 letter to TTCS by GMB listed a plethora of outstandin­g jobs after the expiry of the contract, among them the implementa­tion of role matrix configurat­ion, monthly depreciati­on run, treasury module, payroll module, quality management, the HCM module and hardware for DRP Site.

“Please, take note that the SAP implementa­tion contract between Grain Marketing Board and yourselves expired on November 8, 2019 in terms of Clause 2.11 of the same,” part of the letter to TTCS by GMB finance manager, one C Gutsa, read.

“Be that as it may, we have noted with great concern that there remains numerous outstandin­g works as listed hereunder.”

GMB corporate communicat­ions officer Joseph Katete did not respond to questions emailed to him more than a week ago despite follow-ups.

Zinara also awarded an SAP database migration contract to TTCS and minutes from the roads management agency’s meeting with TTCS showed that, three years on, there was still a lot of outstandin­g work to be done, yet the contract had already expired.

These included the failure by TTCS to avail to the roads agency

SAP licences even though Zinara had already paid.

The failure to produce the licences seem linked to the cancellati­on of the contract between SAP and TTCS.

Zinara spokespers­on Tendai Mugabe acknowledg­ed that the agency was seized with the problems and was doing all it could to rectify them.

“Those are legacy issues and Zi

 ??  ?? IPEC commission­er Grace Muradzikwa
IPEC commission­er Grace Muradzikwa
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