Sir Wicknell Paid $5 Million Without Official Approval: ZPC Shady Deal
Published: 2016 May 16 04:15:05 (5922 Views)
The Zimbabwe Power Company has been brought under fire after it emerged that the management by passed its board and paid $4,8 million to convicted fraudster Wicknell Chivayo’s Intratek Zimbabwe for pre-commencement works on the 100-megawatt Gwanda solar plant without the private firm submitting a performance guarantee to protect public funds.
Managers at ZPC could now face action under their code of conduct.
A performance guarantee or bond is a form of financial security provided by a contractor before receiving any down-payment for a project and it enables the client to have recourse in the event the contractor fails to perform obligations in the contract.
The bungling has seen accusations that the Energy and Power Development Ministry or its Minister, Dr Samuel Undenge, pushed ZPC officials to make the payments to Intratek but Dr Undenge denied the accusations saying the ZPC management blundered on their own and were not supposed to release a cent to Intratek without putting in place mechanisms to recover the money in the event the firm defaulted.
Zesa Holdings and the ZPC board are now calling for an audit of all the power deals involving Intratek.
The $4,8 million was supposed to cover feasibility studies, topographical survey, boreholes, clearance of site, the geo-technical survey, fencing of the site, wayleaves and administrative structures.
Only feasibility studies and the topographical survey have been done on the $200 million project.
Zesa Holdings chief executive Engineer Josh Chifamba confirmed the development saying apart from the audit, the code of conduct would be applied against ZPC officials who defied corporate governance tenets.
ZPC is headed by Engineer Noah Gwariro.
The Zesa Holdings Audit and Risk Management Committee also raised a red flag and summoned ZPC officials to explain the bungling last week.
Zesa group legal advisor and corporate secretary Saidi Sangula wrote to ZPC officials on May 9 requesting them to come for a meeting last Wednesday.
The ZPC board met last Thursday and spent the whole day discussing the Intratek issue with some board members calling for the suspension of officials involved.
- Herald
Managers at ZPC could now face action under their code of conduct.
A performance guarantee or bond is a form of financial security provided by a contractor before receiving any down-payment for a project and it enables the client to have recourse in the event the contractor fails to perform obligations in the contract.
The bungling has seen accusations that the Energy and Power Development Ministry or its Minister, Dr Samuel Undenge, pushed ZPC officials to make the payments to Intratek but Dr Undenge denied the accusations saying the ZPC management blundered on their own and were not supposed to release a cent to Intratek without putting in place mechanisms to recover the money in the event the firm defaulted.
Zesa Holdings and the ZPC board are now calling for an audit of all the power deals involving Intratek.
The $4,8 million was supposed to cover feasibility studies, topographical survey, boreholes, clearance of site, the geo-technical survey, fencing of the site, wayleaves and administrative structures.
Only feasibility studies and the topographical survey have been done on the $200 million project.
Zesa Holdings chief executive Engineer Josh Chifamba confirmed the development saying apart from the audit, the code of conduct would be applied against ZPC officials who defied corporate governance tenets.
ZPC is headed by Engineer Noah Gwariro.
The Zesa Holdings Audit and Risk Management Committee also raised a red flag and summoned ZPC officials to explain the bungling last week.
Zesa group legal advisor and corporate secretary Saidi Sangula wrote to ZPC officials on May 9 requesting them to come for a meeting last Wednesday.
The ZPC board met last Thursday and spent the whole day discussing the Intratek issue with some board members calling for the suspension of officials involved.
- Herald
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