A consortium that won a US$400 million tender to turn
around perennially loss-making National Railways of Zimbabwe (NRZ) has
threatened to sue the company after Transport minister Joel Biggie Matiza
ordered the cancellation of the contract.
Government awarded the Diaspora Infrastructure Group (DIDG)
and Transnet of South Africa the tender to shore up the rail company in a move
that was expected to lower the cost of bulk goods ferrying and improve public
transport efficiency. However, delays in consummating the contract and
Transnet’s decision to pull out from a joint venture scuttled the turnaround
plans.
NRZ insiders said latest communication from DIDG showed
that the investors believed Matiza was personally frustrating the deal.
On June 20, NRZ chairman Martin Dinha wrote to DIDG
inviting them to make written submissions justifying why the contract should
not be terminated, correspondence between the parastatal and the consortium
obtained by The Standard shows.
DIDG executive chairman Donovan Chimhandamba responded on
June 24 expressing concern over Matiza’s alleged meddling.
He said the consortium continued to incur costs after
Matiza terminated the contract.
“We have the monies which have been procured at a significant
cost and continue to incur liabilities in order to keep those monies secured,”
Chimhandamba said. It is not in the interest of NRZ and the nation for the
minister to instruct you to do an unlawful act.
“Ultimately, if this were to happen, significant damages
will have to be paid by NRZ.”
The DIDG boss accused Matiza of railroading NRZ into
terminating the deal in violation of the country’s laws.
“We placed on record right from the beginning that since
his appointment as the minister of Transport, Honourable JB Matiza never liked
our organisation,” he said.
“We have had it on very good authority that he has been
misrepresenting our position to the authorities with a clear intention of
wanting to secure the termination of this tender and to replace same with other
players who are known non-indigenous.
“The directive issued to your board falls outside the
minister’s mandate.
“The undue pressure, which is being exerted on your board
by him and other players is clearly unlawful and must be resisted.
“We trust that your board will uphold the letter and spirit
of our law and consider the merits and demerits of the case in dealing with
this matter.”
In February 2018, the DIDG-Transnet consortium delivered 13
locomotives, 200 wagons and five passenger coaches under a commercial lease
agreement between NRZ and Transnet for the purpose of aiding NRZ deal with
rising chrome and coal stockpiles.
The handover ceremony was officiated by President Emmerson
Mnangagwa. Standard
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