A company that is at the centre of a US$60 million
coronavirus supplies procurement storm, was cleared by permanent secretary in
the Finance ministry, George Guvamatanga,
lawyers defending its representative in the country said yesterday.
This comes as 36-year-old Nguwaya — who represents Drax
Consult SAGL and Drax LL, also known as Drax International — is facing two
counts of fraud.
His lawyers — Tafadzwa Hungwe, Admire Rubaya and Ashiel
Mugiya — told Harare magistrate Vongai Muchuchuti Guuriro during yesterday’s
bail hearing that Nguwaya was being falsely accused by the State; and that
there was no shred of evidence linking him to the alleged offences.
Nguwaya, the lawyers argued, signed contracts between Drax
Consult SAGL and NatPharm as a witness, and was not a shareholder of the
company.
The lawyers tendered before the court a letter which was
written to then Health ministry permanent secretary Agnes Mahomva by
Guvamatanga dated September 30, 2019, giving them the green light to enter into
an agreement with Drax.
“I write following up on my letter of even reference dated
25 September 2019 regarding an expression of interest in the supply of
medicines up to the value of US$20 million by Drax Consult SAGL.
“Please be advised that Treasury has received additional
information indicating that Drax Consult SAGL has no adverse record regarding
its operations. In this regard your ministry can proceed to engage the company
on its offer to supply medicines,” Guvamatanga said in his letter apparently
clearing Drax.
The State is, however, opposing bail on fears that Nguwaya
could flee the country. Nguwaya’s lawyers dismissed this.
The State further argued it was yet to recover US$2 million
which the Zimbabwe government paid into a Hungarian bank account owned by Drax.
The money is at the centre of an Interpol money laundering inquiry.
Nguwaya’s lawyers argued that Nguwaya was a clean man with
no pending cases and had no reason to flee the country.
Guuriro is set to make a ruling on the bail application
today. The State alleges
that Nguwaya misrepresented to the government that the two companies were
capable of supplying drugs to the country, although they were just mere
consulting firms.
The court was told that sometime in 2019, Nguwaya allegedly
connived with one Illir Dedja — who is still at large — and tendered an
expression of interest to supply medicines through a US$20 million facility
under a company called Papi Pharma, which was turned down after a vetting
process by the relevant government departments.
Later, the ministry of Health and Child Care received
another expression of interest from Nguwaya for a similar US$20 million supply
facility, but now under a company called Drax Consult SAGL.
The letter was addressed to Health minister Obadiah Moyo.
It was also alleged that in the expression of interest
documents, the accused persons misrepresented that Drax Consult SAGL was a
pharmaceutical company based in Switzerland, whereas it was a consulting
company with no experience in the manufacture and supply of medicinal products.
Acting on the misrepresentation, the State alleges, Moyo
initiated a process through his then permanent secretary Agnes Mahomva, which
involved the Finance ministry, the Procurement Authority of Zimbabwe (PRAZ) and
NatPharm.
The process culminated in a contract of supply of medicinal
products between NatPharm and Drax Consult SAGL. It was also alleged
that in November 2019, Nguwaya presented himself before NatPharm managing
director Nancy Sifeku and introduced Dedja as the owner of Drax Consult SAGL.
On December 19 2019, a written contract was eventually
agreed between Drax Consult SAGL and NatPharm, which Nguwaya signed as the
company’s local representative, with Dedja identified as the owner of the
company.
State says Nguwaya prejudiced the nation, as government
officials acted on his misrepresentation to process contract papers.
Further allegations are that after being successful in the
first encounter, Nguwaya tendered another expression of interest to supply
medicines worth US$40 million — using a slightly different name, Drax
International LLC.
Based on trust from the previous engagement, the government
allegedly entered into a contract with Drax
International LLC, the court was further told. The
misrepresentations are said to have come to light after a noted variance on the
prices charged by Drax International LLC, vis-à-vis those prevailing on the
market.
The issue of Drax has caused a storm in the country, and it
has since forced the government to pull the plug on both the US$20 million and
US$40 million deals.
Last week, the Zimbabwe Anti-Corruption Commission (Zacc) and
the police also questioned senior officials at PRAZ, Natpharm and the Finance
ministry — as part of their probe into the controversial deals.
And last Thursday, Moyo was reported to Zacc, which has
also since opened a case on him — over Covid-19 related deals. Daily News
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