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Zimbabwe Energy minister admits rules were not followed in awarding power tender

The $5 million would pay for a feasibility study, environmental impact assessment, topographical and geophysical surveys, site civil works as well as fencing of the site, Undenge said. Subcontractors were already on site, he claimed.

“Given the above, it is highly improbable or unlikely that there will be any real prejudice to the ZPC in respect of this particular advance. Thus, in this ministry’s assessment, whereas the risk was there, in reality, there will be no financial prejudice and this in no way exonerates those who erred.”

The government is under fire for awarding $600 million worth of power contracts to Intratrek and its partners, many of which have no record in energy, are facing fraud charges or are facing bankruptcy. In his statement, Undenge said he is never involved in the awarding of tenders by ZPC.

“In terms of the state procurement act, tenders relating to state enterprises or parastatals are administered by the head of the appropriate state enterprise or parastatal,” he said.

These managers, he insisted, decide on who gets the tenders before recommending them to the State Procurement Board.

“One hopes that this account dispels the unfortunate misunderstanding that seems to prevail that my ministry decides on tenders relating to ZESA and its subsidiaries. For the avoidance of doubt, the management of these tenders is the responsibility of the relevant account officers in respect of their tenders and the ministry is not involved nor does it interfere with processes.”

Undenge defended Intratrek’s foreign partner on the Gwanda project, CHINT Electric, describing it as “a well established Chinese international company” that has previously undertaken other power projects in Zimbabwe.

Undenge also referred to reports that he had ordered ZESA Holdings to contract Fruitful Communications, a PR company owned by ZANU-PF MP Psychology Maziwisa. Without admitting his own role in the matter, Undenge said such contracts were common but should follow “due process”.

“It is common practice for big companies to outsource some of the services they require. Such outsourcing must be based on an appreciation of internal or in-house capacities or competencies. In other words, due process must be undertaken and only when the outsourced service will add value are such external services engaged.”-The Source

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This post was last modified on May 24, 2016 2:57 pm

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Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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