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Parliament of Zimbabwe Report on Intratrek Gwanda Solar Project

ZPC should terminate the contract with Intratrek, given that that Mr Chivayo has a criminal record and does not qualify to be a managing director

Dowloand Full 13 Page Report on the National Solar Project in Gwanda – Mines and Energy final

Summary 

The Committee conducted oral evidence sessions with the following: the Minister of Energy and Power Development, Hon. Ambassador S.K. Moyo, the permanent Secretary of Energy and Power Development, Mr. P. Mbiriri, Zimbabwe Electricity Supply Authority (ZESA) Holdings Board and its management; the Zimbabwe Power Company (ZPC) Board and its management; the managing director of Intratrek, Mr W. Chivayo; Mr Tokwe a lawyer representing a Shareholder of Intratrek, officials from the Procurement Regulatory Authority, the former Minister and Deputy Minister of Energy and Power Development, Mr E. Mangoma and Eng M. Mutezo respectively. In order to verify the evidence gathered in the meetings, the Committee embarked on a site visit to Gwanda on the 28 of February 2018.

 Recommendations

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Resolution

Action

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Time

4.1

Laws and regulations governing administration, procurement and management of power projects should be respected.

The Minister of Energy and Power Development should play a leading role in respecting all laws and regulations, in order to set a good example to Boards and Management under Zesa Holdings

Immediately

4.2

Credible investors should be identified and efforts made to attract them to invest in power generation projects.

ZESA Holdings Board and its management should strengthen its marketing in sourcing of potential investors so as to eliminate briefcase businessmen.

Immediately

4.3

Power generation projects should be awarded on merit.

The ZPC Board and its Management should follow due process in the awarding of power generation projects

Immediately

to potential investors through the Resrve Bank of Zimbabwe, Zimbabwe Investment Authority and Parliament of Zimbabwe.

4.4

Potential Investors should be given adequate guarantees that their investments in power generation are safe and secure.

Members of the Executive should observe the rule of law and be consistent in application of its policies so as to attract genuine investors into power generation and allow due process to take course.

Immediately

4.5

The award to Intratrek need to be rescinded in light of violations to the Companies Act and the repealed Procurement Act.

ZPC should terminate the contract with Intratrek, given that that Mr Chivayo has a criminal record and does not qualify to be a managing director of a registered company in Zimbabwe.

ZPC must take over the Project.

Immediately

4.6

Regular inspections should be conducted on national projects to assess progress and for purposes of taking corrective action.

ZPC should be encouraged to conduct regular inspections on national projects and to ensure public funds are used effectively.

Parliament must monitor regularly pre and post events of projects. Parliament of Zimbabwe must provide funds for such to avoid compromise.

Immediately

4.7

Public Entities should ensure that they expend financial resources prudently.

The ZPC Board and its Management should be guided by the Constitution and other statutes on the use public finances.

Immediately

4.8

A value for money audit should be conducted on the Gwanda solar project.

The Auditor General should conduct a value for money audit to determine the losses that government may have suffered through this contract.

Immediately

4.9

ZESA Holdings Board and the ZPC Board should be dissolved for lack of good corporate governance in its structures.

The Minister of Energy and Power Development need to appoint a new Board (s) for the entity, which is professional and has the requisite skills considering issues of gender and regional representation.

Tenure of Boards should go in line with the life of Parliament to allow continuity of oversight work.

Immediately

4.10

Ministers and deputy Ministers named in the corrupt activities at the Gwanda Solar Project should be investigated and prosecuted if found guilty.

The Zimbabwe Republic Police should conduct an investigation on Ministers and deputy Ministers implicated in the scandal at the Gwanda Solar Project. The money paid to Intratek should be recovered after investigations are concluded.

Immediately

4.11

Board Appointments should be conducted through Parliament.

A law should be enacted that allows for Parliament, through the Standing Rules and Orders Committee to conduct interviews and make recommendations on suitable candidates to sit on boards of parastatals.

Immediately

Conclusion

The Committee is very much convinced that the award to Intratrek was done unprocedurally, unlawfully and there may way have been an exchange of monies between the negotiators of the deal. There is need to clear the controversy surrounding this project in order to attract genuine and meaningful investment for the project. Electricity is a critical component in spurring and stimulating economic development, hence a transformed and rejuvenated Zesa Holding is needed in ensuring that the country is able to improve and increase its local generation capacity.

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