Zimbabwe Parliament report on ZINARA 2017-2018 audit- Part 5

FINDINGS AND RECOMMENDATIONS ON SPECIAL PROJECTS

321. The Committee noted that the Plumtree -Mutare highway was a huge project in respect of which the Republic of South Africa through DBSA loaned Zimbabwe a huge amount of US $ 206 million at a time when Zimbabwe like now still had huge arrears to the World Bank, the African Development Bank and the Paris Club of Lenders.
322. For this gesture of Pan African solidarity the Committee expresses gratitude to DBSA and the Republic of South Africa.
323. The Committee encourages the Government to seek further assistance and partnerships with the Republic of South Africa and other African countries for similar cooperation and help in the development of its infrastructure projects pending the clearance of its arrears with International Financial Institutions and other international creditors.
324. In this regard therefore, the Committee urges the Republic of Zimbabwe to honour all its commitments in the various agreements with concerned parties.
325. However, given how onerous these obligations are, the Committee endorses the decision taken by the ZINARA Board and the Minister of Transport and Infrastructural Development of renegotiating the terms and conditions of the agreements.
326. The Minister of Transport of Transport and Infrastructural Development is directed, within three months of the presentation of this report to Parliament to present a report to Parliament on the Plumtree-Mutare Highway Project and all other incidental issues including the result or status of the renegotiation process.
327. After the process of compiling this report, the Committee learnt that the shareholding and ownership of Group Five had changed hands. The Committee was made to believe that such a change of ownership affected the agreement with the authorities in Zimbabwe particularly Infralink and ZINARA.
328. In the interest of transparency, the Committee requests that the Minister of Transport and Infrastructural Development to present a report to the Public Accounts Committee on the following issues:

• The change of ownership, if any in respect of the parties to the   agreement;
• Full details of all the monies paid to all the parties in respect of the agreements;
• A report on the renegotiations to the contract in light of Zimbabwe’s changed macro-economic environment.

CONCLUSION

329. In conclusion, the Committee places on record that the ZINARA audit was amongst the toughest oversight functions that the Committee has carried out to date.
330. The extent of the omissions and commissions at ZINARA, the extent of the corruption and the extent of the extraction is huge.
331. The Committee trusts that the Executive shall react with urgency and panic to the findings of this report and ensure that measures are taken to ensure that the country’s institutions are never captured and subverted in the manner that ZINARA was.
332. The Constitution of Zimbabwe is clear.
333. The Constitution of Zimbabwe stands for good governance transparency, openness and accountability. These principles are clearly spelt out in Chapter 9 of the Constitution of Zimbabwe.
334. Public entities such as ZINARA must abide by the Constitution of Zimbabwe. I thank you.

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