$100m Zesa tender scam raises stink

$100m Zesa tender scam raises stink
Published: 07 December 2018 (248 Views)
IRREGULAR tender procedures coupled with a lax accounting system, among other factors, have delayed the completion of the US$100,4 million prepayment and smart metering project the power utility, Zesa, rolled out, a latest report from the Auditor-General Mildred Chiri shows.

Resources to roll out the smart metering project, which was meant to improve Zesa's revenue collection system, were secured through a loan from Afreximbank and the Infrastructural Development Bank of Zimbabwe (IDBZ).

The prepayment and smart metering project, which has been mired in a corruption scandal, was initiated in 2011 by Zesa through its subsidiary the Zimbabwe Electricity Transmission and Distribution Company (ZETDC). Implementation of the project was scheduled to be completed by 2014, but was derailed owing to "inconsistencies in the payments" made to various contracted firms. Chiri's damning audit report comes a month after three Zesa executives, namely Joshua Chifamba, Julian Chinembiri and Thokozani Dhliwayo, were arrested last month over an irregular US$35 million transaction involving Indian firm PME contracted to supply transformers.

According to the smart metering audit report, a number of companies such as Powertel, REVMA and OK Retail were unprocedurally contracted to offer various services, opening loopholes for potential misappropriation of project funds.

Chiri further stated that the ZETDC could not specifically quantify how much it had spent in financing various activities under the project.

"Documentary review of submitted responses from finance department as at September 19, 2015 indicated that ZETDC had paid a total of US$99 782 743 towards the prepayment activities, a figure which varied with the final submitted prepayment project payments by the same department as at May 20, 2016," Chiri observed. "There were also some inconsistencies in the payments made to a company called REVMA for vending system as reported in the statements of payments on September 19, 2015. It indicated a figure of US$5 254 038 that varied with the reported figure as at May 20, 2016 amounting to US$2 506 310 which was later revised to US$10 086 338 according to the finance department report.

"Documentary review of Ministry of Energy and Power Development showed that ZETDC's appointment of Powertel as a sole aggregator was not through a formal tender process. Even though Powertel participated in the tender for aggregatorship, it failed to win against other bidders. In addition, Powertel acted as both the aggregator as well as the vendor selling electricity tokens at its banking halls posing an unfair trading ground for other vendors. ZETDC also appointed OK Zimbabwe Limited as vendor for the pilot project and renewed its appointment during the pilot phase without going to tender."

As part of her recommendations, Chiri noted that: "Tenders should be awarded by ZETDC based on merit rather than direct appointments to ensure better quality service and thereby achievement of the intended results."

Chiri also noted that the smart metering system, primarily introduced to improve revenue collection, was not achieving its intended objective.

- the independent

Tags: Zesa, Tender, Fraud,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Mnangagwa back from Ramaphosa inauguration

by Staff reporter | 25 May 2019 | 91 Views

Zimbabwe heroes and heroines conferment process explained

by Ambassador Simon Khaya Moyo | 25 May 2019 | 85 Views

Mapeza back at the summit

by Daniel Itai | 25 May 2019 | 74 Views

Umkhonto we Sizwe Military Veterans mourn Dabengwa

by Issued on behalf of the President of MKMVA, comrade Kebby Maphatsoe, by Carl Niehaus | 25 May 2019 | 72 Views

Prodigal son donate truckloads of mealie meal for MDC congress

by Staff reporter | 25 May 2019 | 129 Views

Chamisa assembling team to force early poll

by Staff reporter | 25 May 2019 | 85 Views

Dabengwa's body expected home on Sunday

by Staff reporter | 25 May 2019 | 68 Views

PHOTO: Mugabe meme goes viral

by Social media | 25 May 2019 | 153 Views

Ndiweni endorses Chamisa

by Staff reporter | 25 May 2019 | 80 Views

Umkhonto we Sizwe Military Veterans mourns Dabengwa

by Issued on behalf of the President of MKMVA, comrade Kebby Maphatsoe, by Carl Niehaus | 25 May 2019 | 90 Views

Ideal Zimbabwe President flees to SA after being granted bail

by Staff reporter | 25 May 2019 | 107 Views

MDC congress in late start

by Staff reporter | 25 May 2019 | 109 Views

Zhuwao, Wadyajena in war of words

by Staff reporter | 25 May 2019 | 103 Views

Dabengwa to be declared national hero

by Staff reporter | 25 May 2019 | 128 Views

Mnangagwa feels the heat

by Staff reporter | 25 May 2019 | 136 Views

Sadness at the hands of the Zanu-PF

by GoodNess Nwachukwu | 25 May 2019 | 97 Views

Statement by the NANGO on Africa Day

by NANGO | 25 May 2019 | 79 Views

A smoking pipe hung precariously from his blackened lips

by Thomas Murisa | 25 May 2019 | 82 Views

Africa Day ADF speech 2019

by Dr Vusumuzi Sibanda | 25 May 2019 | 70 Views

We want real meat-pies not soya-chunks

by Thomas Murisa | 25 May 2019 | 46 Views

Mourn DD as He Was

by Mkhululi Zulu Zapu Presidential Spokesperson | 25 May 2019 | 63 Views

MDC Congress: A case for tribal balance

by Jimmy Jombo Charowa | 25 May 2019 | 71 Views

Mnangagwa gets wild cheers in South Africa

by Mandla Ndlovu | 25 May 2019 | 110 Views

JUST IN: 5 CIOs storm Kasukuwere's farm

by Mandla Ndlovu | 25 May 2019 | 101 Views

WATCH: Apostle Chiwenga prophesying on Dabengwa's death

by Mandla Ndlovu | 25 May 2019 | 90 Views

'Mnangagwa's dialogue is nonsense' says Chief Ndiweni

by Mandla Ndlovu | 25 May 2019 | 103 Views

MDC CONGRESS: Latest voting results

by Mandla Ndlovu | 25 May 2019 | 129 Views

Africa Day not yet uhuru

by Dr Masimba Mavaza | 25 May 2019 | 68 Views

I say no to executive share option lets have minority and all employees

by Engineer Jacob Kudzayi Mutisi | 25 May 2019 | 62 Views

No more excuses in fighting graft

by Staff reporter | 25 May 2019 | 63 Views

Ndiweni endorses Chamisa

by newzimbabwe.com | 25 May 2019 | 64 Views

Mnangagwa, Chiwenga fly Dubai planes

by ZimLive | 25 May 2019 | 74 Views

Chiwenga receiving treatment in India

by Staff reporter | 25 May 2019 | 63 Views

MDC congress in slow start

by Staff reporter | 25 May 2019 | 57 Views