$100m Zesa tender scam raises stink

$100m Zesa tender scam raises stink
Published: 07 December 2018 (138 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

Zimbabwean born top PIC executive suspended in SA

by Staff reporter | 22 January 2019 | 123 Views

ZCTU boss charged with subversion

by AP | 22 January 2019 | 117 Views

'Heads will roll,' says Mnangagwa

by Staff reporter | 22 January 2019 | 164 Views

Mthuli Ncube sees fiscal order taming inflation, budget gap

by Bloomberg | 22 January 2019 | 119 Views

Jonathan Moyo takes Mnangagwa head on

by Mandla Ndlovu | 22 January 2019 | 127 Views

'Release political prisoners before dialogue' Chamisa says

by Nelson Chamisa | 22 January 2019 | 127 Views

MDC polishes art of violence

by Chigumbu Warikandwa | 22 January 2019 | 81 Views

Chiwenga captures Herald?

by Mandla Ndlovu | 22 January 2019 | 124 Views

Mnangagwa calls for dialogue with MDC

by Mandla Ndlovu | 22 January 2019 | 221 Views

Mnangagwa condemns Army killings

by Mandla Ndlovu | 22 January 2019 | 174 Views

Tajamuka speaks on natioanl dialogue

by Mandla Ndlovu | 22 January 2019 | 175 Views

Kombis feel the heat

by Staff reporter | 22 January 2019 | 132 Views

Zanu-PF applauds Govt interventions

by Staff reporter | 22 January 2019 | 117 Views

MNOs restore full Internet services

by Staff reporter | 22 January 2019 | 91 Views

'Restraint by Zimbabwe security forces saved lives'

by STaff reporter | 22 January 2019 | 87 Views

Zimbabwe ignores second protest push

by Staff reporter | 22 January 2019 | 106 Views

Zimbabwe Regime change agenda exposed

by Staff reporter | 22 January 2019 | 98 Views

Kombis reduce fares

by Staff reporter | 22 January 2019 | 92 Views

Rogue protestors cop 'killers' in court

by STaff reporter | 22 January 2019 | 90 Views

Armed robber disarmed, killed

by Staff reporter | 22 January 2019 | 93 Views

MDC MPs, 21 others denied bail

by Staff reporter | 22 January 2019 | 89 Views

Residents dump looted goods in bush

by Staff reporter | 22 January 2019 | 94 Views

Man arrested for stoning Zanu-PF offices

by Staff reporter | 22 January 2019 | 81 Views

Zimbabwe probe third force behind looting orgy

by Staff reporter | 22 January 2019 | 94 Views

Low pupil turn-out at schools

by Staff reporter | 22 January 2019 | 74 Views

Khaya Moyo challenges authorities to sort fuel coupons mess

by Staff reporter | 22 January 2019 | 60 Views

MDC MPs meet over persecution

by Staff reporter | 22 January 2019 | 56 Views

MDC-Alliance planned shutdown flops

by Staff reporter | 22 January 2019 | 52 Views

Soldiers deployed to guard ZUPCO buses

by newzimbabwe | 22 January 2019 | 59 Views

Tocky Vibes blasts army, police for killing civilians

by Staff reporter | 22 January 2019 | 52 Views

Man in court for dating minor

by Staff reporter | 22 January 2019 | 55 Views

Mphoko fraud trial stalls

by Staff reporter | 22 January 2019 | 42 Views

Police block Bulawayo Gukurahundi march

by newzimbabwe | 22 January 2019 | 50 Views

Mnangagwa will never change his spots

by Fin24 | 22 January 2019 | 58 Views

Another warrant of arrest for Chief Ndiweni

by Staff reporter | 22 January 2019 | 49 Views

Zanu-PF youths raid Kwekwe money changers

by Staff reporter | 22 January 2019 | 59 Views

Prosecutors dodge Mandiwanzira's trial

by newzimbabwe | 22 January 2019 | 56 Views