Friday, June 1, 2018

Zesa told to pull plug on Chivayo

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PARLIAMENT yesterday recommended the investigation and prosecution of the four former Energy ministers Samuel Undenge, Dzikamai Mavhaire, Elton Mangoma and former Energy deputy minister Munashe Mutezo after they were all implicated in Wicknell Chivayo’s controversial Gwanda Solar Project.
BY VENERANDA LANGA
The call was made by Mines and Energy Portfolio Committee chairperson, Temba Mliswa where he also recommended that the Zesa Holdings and Zimbabwe Power Company (ZPC) boards must be disbanded immediately for failing to follow good corporate governance practices on the Chivayo issue.
The committee also called on Zesa to immediately terminate Chivayo’s $183 million contract, claiming the tender was awarded under suspicious circumstances and on political grounds.
“Ministers and deputy ministers named in the corrupt activities at the Gwanda Solar Project should be investigated and prosecuted, and the Zimbabwe Anti-Corruption Commission and the Zimbabwe Republic Police should conduct an investigation on the ministers implicated in the scandal,” Mliswa said.
“The money paid to Intratrek ($5,6 million) should be recovered after investigations are completed,” he said.
“The award to Intratrek needs to be rescinded in light of violations of the Companies Act and the repealed Procurement Act,” he said.
The committee highlighted that they were not impressed by the Zesa and ZPC boards, which were negligent in carrying out proper oversight on the project, resulting in the payments to Chivayo being made without board approval.
“The committee was informed that the (ZPC) managing director Noah Gwariro acted without consulting the board because of pressure from politicians that included former ministers of Energy, Mavhaire, Mangoma, Undenge and Mutezo, however, Mutezo appeared before the committee and denied the allegations,” the report read.
“It was clear that Undenge used to have direct communication with ZPC management and was the one said to have instructed the ZPC board to make payments to Chivayo without providing a bank guarantee,” the report said.
The committee members said they were shocked when they visited the project site in Gwanda and found two temporary shacks after Chivayo had received a down payment of $5,6 million without ZPC board approval.
“The committee is concerned that several power projects with a capacity to generate more than 200 megawatts are not moving in the country,” Mliswa said.