Minister in U-turn over payments to Wicknell Chivayo

Energy and Power Development Minister Samuel Undenge has summoned the Zimbabwe Power Company to justify reasons for paying controversial businessman Wicknell Chivayo's Intratek $5 million for the 100 megawatt Gwanda solar project in the absence of a performance guarantee to safeguard public funds.

Undenge, who was last week quoted as saying ZPC tenders were aboveboard, yesterday made a U-turn in the wake of the exposure of irregularities by The Herald saying there was need to get to the bottom of the matter and take action on officials who bungled on the $200 million project.

The performance guarantee would have given ZPC room to recover its money in the event Intratek defaulted on the contract. As it stands, the Zesa Holdings subsidiary has nothing in place to cover the risk.

Initially, Undenge had been accused of pushing ZPC officials to make the payment in the absence of a bond.