Zimbabwe Electricity Supply Authority (ZESA) handed a $250 million tender to Sakunda Holdings. It is for the installation of the 200MW Dema Diesel Power Plant in violation of the country’s procurement procedures. Sakunda Holdings is owned by a very prominent as well as controversial Businessman, Kudakwashe Tagwirei. He is a close ally to President Emmerson Mnangagwa. This news came out during a Public Accounts Parliamentary Portfolio committee. It was announced by ZESA officials on Monday.
Committee chair, Tendai Biti called the deal “atrocious” as it was agreed upon without following due tender procedures, according to the Auditor General’s report. He wanted answers to many questions because of this illusional deal.
“Who corruptly awarded Sakunda the US$250 million Dema Power Plant deal and why? How did ZESA get a US$35 million loan from Afreximbank without Parliamentary approval,” asked Biti.
According to sources, the Power Plant was a national project. So the Energy ministry gave ZESA the authority to procure through a special formal tender process.
Paurina Mupariwa said that “The State Procurement Board has been sidelined from procurement processes violating the Public Finance Management Act,” Sydney Gata, ZESA executive chairman admitted to the committee the deal was “bad” and requested to respond in writing to the questions posed by the MPs.
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Data source: New zimbabwe