Monday , June 14 2021

Illegal bosses cost Zinara $ 200 million – Nehanda Radio

Author: Tendai Mugabe

The National Administration of Zimbabwe (Zinara) has suffered a financial loss of more than USD 200 million due to the incompetence and lack of specialist knowledge of senior management in negotiating contracts beneficial to the state entity.

Minister of energy and energy development Dr. Joram Gumbo
Minister of energy and energy development Dr. Joram Gumbo

It is believed that managers also helped themselves in strong profits, which led to a call to audit the lifestyle of managers.

The committee set up by then Minister for Transport Development and Infrastructure, Joram Gumbo, to examine the audit report Grant Thornton revealed the shocking incompetence of the senior managers of Zinara.

In its summary, the committee recommended that managers be accused of incompetence and falsification of qualifications.

For example, in relation to the Plumtree-Mutare motorway project implemented by the Piątka Group, which was financed with a loan of USD 206 million from Bank Rozwoju in South Africa, the project ended at over USD 464 million due to avoidable additional costs incurred with credit servicing.

In its final report to Minister Gumbo, the commission recommended: "We will take disciplinary measures against Mr. Moses Juma due to incompetence, negligence and ineffectiveness, as evidenced by the negligence of obligations with regard to payments made on special projects without technical input, purchase of pre-manufactured office material without the consent of the management and recruitment of Ms. J. Maphosa as a human resources manager alone.

"Disciplinary proceedings against Mr. Precious & # 39; and Murove & # 39; for falsification of qualifications and engineer Kufa, engineer from the southern region, for incompetence, negligence and ineffectiveness, as evidenced by the negligence of obligations in connection with expending funds for special projects without technical contribution ", we read in the report.

"The police were reported against Mr. Frank Chitukutuk (former CEO) in order to investigate a possible criminal abuse of office due to his undue influence in connection with the participation of contractors in special projects without proper procurement procedures.

"The Committee recommends a lifestyle audit for all management and leadership of Zinara."

The Plumtree-Mutare motorway project, according to evidence from the committee's report, reveals one of the biggest financial losses for Zinar due to the incompetence of the management.

Zinara pays an unexplained, three-percent capital charge to Santanah Holdings from South Africa for facilitating a loan of DBSA 206 million. In connection with the DBSA loan of USD 206 million, Santanah was charged USD 6,198,000.

The Commission said: "In addition to these payments, the Committee has since established that Zinara also pays administrative fees on an annual basis during the period under review (from 2011 until 2016) to Santanah / Sela / Golden Road in the amount of administrative fees USD 22 733 196.

"In addition, the committee found that the total amount of USD 33 281 196 was paid as administration and raising capital in the amount of USD 24 241 719."

With regard to another contract concluded by the company named Golden Road, the commission concluded that verbal evidence presented by Zinara showed that the public entity pays three percent of USD 145,000,000 for the alleged loan granted to Zinar.

Zinara also pays 1.3 percent of US $ 145 million every six months, which is a fee for improvement due to Golden Road.

Oral evidence presented to the committee revealed that: "Golden Road did not receive a loan of USD 145,000,000 for Zinar, and the agreement between Zinara and Golden Road was not approved by the management."

The commission said: "Zinara can not take loans under the Roads Act without ministerial approval, and the provision in the agreement to get a loan for a project for Zinara is ultra vires, which means that the contract is null and void."

There were several other contracts for so-called special projects, the sum of which amounted to millions of dollars, when Zinara suffered serious financial prejudices.

Of all the Zinara directors who were involved in these contracts, only Juma was put on trial and is currently serving a two-year prison sentence. The Herald

Source link