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

External Procurement

88 In general terms, ZINARA embarked in massive procurement without compliance with the law and good corporate governance. In some instances, contracts were awarded without tender and even without board approval.

89 In 2014 seven Prefab Offices were purchased for various Border Posts which included Kariba, Victoria Falls, Kazungula, Plumtree, Mount Selinda, Mukumbura, Mphoeng, Maitengwe and Pandamatenga. The total costs of these structures were USD $168 912.

90 The auditors established that these structures were purchased without board approval and tender during the tenure of Engineer M. Juma as Acting Chief Executive Officer.

91 Between 1January 2011 and 31 March 2016, ZINARA bought equipment and various materials which included graders, jet patchers, fuel and road construction materials.

92 In the same period, a total sum of USD $562 035 was spent purchasing fuel for local authorities, all of which was purchased from Redan.

93 On 31 October 2014, the board was advised that ZINARA had purchased two Jet Patchers for USD $600 000. The challenges with these transactions were that they were not subjected to tender, but more importantly ZINARA was acting out of its mandate of being the provider of finances to local authorities.

Univern: Tendered 40 Motor Graders

94 On 23 March2012 the ZINARA Board made a resolution for the purchase of 40 Motor Graders for the Department of Roads and District Development Fund (DDF).

95 Although the auditors were unable to obtain a letter inviting tenders for this transaction, they were advised that tenders were invited on 13 July 2012.

96 The invitation to tender closed on 21 August 2012 and 39 bids were received. On 17 September 2012, Mr. Chitukutuku wrote a letter to the State Procurement Board (SPB) making their recommendations for the supply and delivery of forty (40) motor graders.

97 Top of the list was Univern Enterprises which undertook to supply 40 JLS 220 graders, to be delivered within eight weeks at a price of USD $201 020 per grader.

98 On 19 October 2012, the SPB awarded the tender for the supply and delivery of 40 graders at a total cost of USD $8 040 800 through Procurement Board Resolution (PBR 1854).

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