Minister Undenge distances self from ZPC tender scandal

ENERGY and Power Development Minister Samuel Undenge says his ministry does not decide on tenders relating to Zesa and its subsidiaries.

Responding to concerns over alleged corruption in the awarding of energy tenders involving Intratrek Zimbabwe, Minister Undenge distanced himself from any wrong-doing saying in terms of the State Procurement Act, tenders relating to State enterprises or parastatals are administered by the head of appropriate entities.

Last week, the minister summoned the Zimbabwe Power Company (ZPC) to proffer reasons for paying ex-convict Wicknell Chivayo's Intratrek, $5 million for the 100 megawatt Gwanda solar project without him submitting a performance guarantee to safeguard public funds.

The power utility has since called for an audit on the other power deals involving Intratrek.

"Accordingly, tenders to Zesa Holdings or any of its four subsidiaries are administered by the group chief executive officer or relevant managing director as appropriate. They determine the necessary terms of reference and specifications; adjudicate on the bids and recommend direct to the State Procurement Board (SPB) who the recommended winning tenderer is and the reasons thereof," he said in a statement yesterday.

He said the SPB reviews the process inclusive of the recommendation and pass their own judgment thereon.

Minister Undenge said his ministry was informed regarding progress on the same through the returns or reports of each State enterprise or parastatal.

"One hopes that this account dispels the unfortunate misunderstanding that seems to prevail that my ministry decides on tenders relating to Zesa Holdings and its subsidiaries.

For the avoidance of doubt, the management of these entities' tenders are the responsibility of the relevant accounting officers in respect of their tenders and the ministry isn't involved nor does it interfere with processes," he said.

The minister admitted that each time public funds were advanced to service providers, there was a risk that the goods or service may not be delivered.

And to mitigate such risk, he said, it is a standard requirement that a bank guarantee is secured against possible failure to deliver.

"Such an inevitable requirement should have been considered in the case of a $5 million advance payment to Intratrek by the Zimbabwe Power Company.

"In this regard and noting the many energy projects that we're embarking upon, it was necessary for me to engage both management and the ZPC board chairman on this issue," said Minister Undenge.

"Common ground has been established on the same and, going forward, the relevant procedures and requirements shall be adhered to."

He said the agreement between ZPC and the contractors stipulates that there shall be payment for pre-works.

The work involves preparation of feasibility study, environmental impact assessment, topographical and geophysical surveys, site civil works as well as fencing of the site.

To that effect, he said $5 million has been paid and subcontractors were on site.