Zimbabwe Parliament report on ZINARA 2017-2018 audit- Part 3

Univern’s Software Contracts

138 Univern Enterprise (Pvt) Ltd, trading as Southern Region Trading Company (SRTC) is a company registered in Zimbabwe with two shareholders Laurence Neil Sher and Sherice Sher. There are three Directors namely, Laurence Neil Sher, Sherice Sher and Musekiwa Kumbula.

139 Three contracts were awarded to Univern, all without tender, which have serious financial and security ramifications to the Republic of Zimbabwe.

140 These contracts are as follows:

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141 This report now analyses and breaks down these massive contracts.

Motor Vehicle Licensing Software Agreements

142 According to the Forensic Audit Report, on 8 April 2011, ZINARA resolved to engage Univern to computerize vehicle licensing.

143  In a meeting on 13March 2012, the ZINARA Board resolved that   Univern:

‘…is hereby engaged to put a licensing system in place for a period of 12 months, renewable thereafter for a cost of 20% after ZIMPOST commission has been paid.’

144 The Forensic Audit Report refers to a contract having been agreed to between ZINARA and Univern on the above terms but there is no production in the annexures of a written agreement to this effect.

145 It is not in dispute that ZINARA did not go to tender and therefore there was no compliance with provisions of Part IV of the then Procurement Act [Chapter 22:14], read together with Section 8 of the Procurement Regulations SI 171 of 2002.

146 Through a letter dated 14 March 2016, which is not available in the two Audit Reports, Engineer J. M. Juma, the Acting Chief Executive Officer wrote to the State Procurement Board seeking condonation.

147 On April 8, 2016, through Mr. Mutanhaurwa the Acting Principal Officer of the State Procurement Board, a letter was written to ZINARA where condonation was granted on the following terms;

“STATE PROCUREMENT BOARD

Established under the Procurement Act [Chapter 22:14]

Fifth Floor                                                P. O. Box CY 408
Old Reserve Bank Building                  Causeway
76 Samora Machel Avenue                    Zimbabwe
Harare

Telephones: 752539; 752540                      Fax: 773089
753132; 723758                            Telex: 22662ZW
April 8, 2016                                                  SPB/C/24

Acting Chief Executive Officer

ZINARA
Eng. J. M. Juma

REQUEST FOR REGULARISATION OF ZINARA AND UNIVERN ENTERPRISES P/L PUBLIC PRIVATE PARTNERSHIP AGREEMENT ON COMPUTERISATION OF REVENUE COLLECTION SYSTEMS

———————————————————————————  Reference is made to your minute dated March 14, 2016, concerning the above.

During their Meeting No. 20/2016 of March 24, 2016, Members noted that the Private Public Partnership Agreement (PPP) entered into between Univern Enterprises P/L t/a Southern Region Trading Company and ZINARA was through Direct Engagement, contrary to Section 49 of the Procurement Act as read with PPP Guidelines (2005) and Section 315(2) of the Constitution of Zimbabwe, all of which requires the identification of PPP Partners through a transparent process or by Tender.

The Accounting Officer and Univern Enterprises P/L should, within 14 days of notification and each pay US$ 900. 00 administration fees for failure to follow proper tender procedures.

Univern Enterprises P/L should within 14 days of notification pay US$ 12 000. 00 annual administration fees (being maximum payable for the Direct Award), for every year that the PPP subsisted and was consummated without proper authority, since 2012, in line with S.I. 159 of October 12, 2012.

The Accounting Officer should, within 14 days of notification, submit Annual Procurement Reports on the PPP Costs paid to Univern Enterprises P/L without proper authority since commencement of the Agreement, for the Board’s records and verification of administration fees due.

You are therefore advised to proceed as follows;-

1. Take necessary steps as directed by the resolution.
2. In all communications, please quote the above PBR number and the date.
3. Mutanhaurwa

ACTING PRINCIPAL OFFICER

for: STATE PROCUREMENT BOARD

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