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Chivayo bags US$400 million cancer equipment deal with Mnangagwa's Office
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Flamboyant businessman Wicknell Chivayo has landed a massive cancer treatment equipment supply contract worth over US$400 million with Zimbabwe's Office of the President and Cabinet, further extending his grip on lucrative government tenders across multiple sectors.
Chivayo, a well-known ally of President Emmerson Mnangagwa, signed the deal through one of his companies, marking his official expansion into the public health sector. The agreement adds to a long list of controversial contracts he has secured in energy, defence procurement, construction, transport, internet services, and election logistics, among others - deals that have reportedly earned him hundreds of millions of dollars in hard currency over the years.
Under the terms of the cancer treatment equipment contract, the government has committed to paying Chivayo a total of US$109.3 million annually over a four-year period. This brings the full contract value to over US$437 million. The agreement includes an advance payment of US$52.5 million, which is due within 14 days of the contract's signing to allow the supplier to mobilise resources and begin executing obligations.
The remaining balance will be paid in monthly instalments beginning April 30, 2025, and continuing through March 30, 2026. This structure will be repeated for each of the three subsequent years, ensuring full settlement of the contract within 48 months. All payments are to be made via electronic funds transfer in United States dollars, directly to Chivayo's designated bank account.
This latest development has raised eyebrows in both public and private sectors, given Chivayo's past controversies. He has previously been accused of failing to deliver on major energy projects, most notably the Gwanda solar project, despite receiving substantial upfront payments. However, his close political connections have repeatedly shielded him from prosecution or lasting consequences, allowing him to resurface with even bigger state contracts.
Critics say the deal reflects ongoing concerns about the lack of transparency and competitive bidding in Zimbabwe's public procurement processes. The timing of the deal has also sparked debate, as the country's health system continues to suffer from underfunding, equipment shortages, and chronic staff turnover, leaving public hospitals struggling to provide even basic care.
The Office of the President and Cabinet has not publicly commented on the awarding of the contract, and no official procurement documents have been released to the public. Meanwhile, Chivayo remains silent on the specifics of the agreement, even as public scrutiny grows over how such large contracts are awarded and executed in Zimbabwe.
Chivayo, a well-known ally of President Emmerson Mnangagwa, signed the deal through one of his companies, marking his official expansion into the public health sector. The agreement adds to a long list of controversial contracts he has secured in energy, defence procurement, construction, transport, internet services, and election logistics, among others - deals that have reportedly earned him hundreds of millions of dollars in hard currency over the years.
Under the terms of the cancer treatment equipment contract, the government has committed to paying Chivayo a total of US$109.3 million annually over a four-year period. This brings the full contract value to over US$437 million. The agreement includes an advance payment of US$52.5 million, which is due within 14 days of the contract's signing to allow the supplier to mobilise resources and begin executing obligations.
The remaining balance will be paid in monthly instalments beginning April 30, 2025, and continuing through March 30, 2026. This structure will be repeated for each of the three subsequent years, ensuring full settlement of the contract within 48 months. All payments are to be made via electronic funds transfer in United States dollars, directly to Chivayo's designated bank account.
This latest development has raised eyebrows in both public and private sectors, given Chivayo's past controversies. He has previously been accused of failing to deliver on major energy projects, most notably the Gwanda solar project, despite receiving substantial upfront payments. However, his close political connections have repeatedly shielded him from prosecution or lasting consequences, allowing him to resurface with even bigger state contracts.
Critics say the deal reflects ongoing concerns about the lack of transparency and competitive bidding in Zimbabwe's public procurement processes. The timing of the deal has also sparked debate, as the country's health system continues to suffer from underfunding, equipment shortages, and chronic staff turnover, leaving public hospitals struggling to provide even basic care.
The Office of the President and Cabinet has not publicly commented on the awarding of the contract, and no official procurement documents have been released to the public. Meanwhile, Chivayo remains silent on the specifics of the agreement, even as public scrutiny grows over how such large contracts are awarded and executed in Zimbabwe.
Source - online
