Sunday , April 18 2021

Inept bosses cost $ 200 million to Zinara – Nehanda Radio

From Tendai Mugabe

The Zimbabwe National Road Administration (Zinara) has suffered a financial loss of more than $ 200 million due to the incompetence and lack of experience of its senior managers to negotiate charitable contracts for the state entity.

Minister of Energy and Energy Development Dr. Joram Gumbo
Minister of Energy and Energy Development Dr. Joram Gumbo

It is believed that managers were also helping themselves to great advantages, leading to a call for an executive lifestyle audit.

A committee formed by then-Minister of Infrastructure and Transport Development Joram Gumbo to study Grant Thornton's audit report exposed the shocking incompetence of Zinara's senior managers.

In its executive summary, the committee recommended that managers be accused of incompetence and falsification of qualifications.

For example, with respect to the Group Five Plumtree-Mutare road project financed by a $ 206 million loan from the Southern African Development Bank, the project cost more than $ 464 million due to additional avoidable costs Incurred in the service. the loan.

In its final report to Minister Gumbo, the committee recommended that: "Disciplinary measures be taken against Mr. Moses Juma for incompetence, negligence and inefficiency, as evidenced by the abandonment of duty in respect of disbursements made in special projects without technical contribution, purchase of prepaid office equipment manufactured without board approval and recruitment of Mrs. J. Maphosa as a human resources manager alone.

"Disciplinary action against Mr. Precious Murove for falsification of qualifications and engineer Kufa, the engineer of the southern region, for incompetence, negligence and inefficiency, as evidenced by the abandonment of duty with regard to disbursement made in special projects, without technical input "says the report.

"A police report was made against Mr. Frank Chitukutuku (former executive director) for an investigation to be launched on the possible criminal abuse commission charge with regard to his exercise of undue influence in hiring contractors for special projects without following proper procurement procedures.

"The committee recommends a lifestyle audit for all Zinara executives and managers."

The Plumtree-Mutare Highway project, according to evidence from the committee's report, exposes one of the biggest financial losses to Zinara due to management's incompetence.

Zinara is paying an unexplained capital charge of three percent to a company called Santanah Holdings of South Africa for facilitating the $ 206 million DBSA loan. For the $ 206 million loan from the DBSA, a capital raising fee of $ 6,200,000 was paid to Santanah.

The committee said: "In addition to these payments, the committee has established that Zinara is also paying administration fees annually. For the period under review (2011 to 2016), a total of $ 22,733,196 was paid to Santanah / Sela / Golden Road as administration fees.

"The committee also established that a total of US $ 33,228,169 was paid as an administration and a capital increase of US $ 24,241,719."

Regarding another settlement of a company called Golden Road, the committee said that Zinara's oral evidence showed that the state entity was paying 3% of $ 145 million for an alleged loan obtained on behalf of Zinara.

Zinara is also paying 1.3% of the $ 145 million every six months, with the facilitation rate due to Golden Road.

Oral evidence presented to the committee revealed that: "Golden Road did not get a $ 145 million loan for Zinara and the agreement between Zinara and Golden Road was not approved by the board."

The committee stated that: "Zinara is barred from borrowing money from the Road Law without ministerial approval and the provision in the agreement that seeks to obtain a project loan for Zinara is ultra vires making the contract invalid."

There were several other contracts for so-called special projects, reaching millions of dollars, where Zinara suffered serious financial losses.

Of all the Zinara executives involved in these contracts, only Juma was taken to court and currently serving a two-year prison sentence. The herald

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