A team of experts
assembled by Government from both the private and public sector to pore over
the recent Zinara forensic audit has recommended the recovery of funds that
were allegedly bilked from the parastatal and a lifestyle audit for its staff.
A forensic audit by Grant Thornton in 2017 exposed
deep-seated rot and corporate malfeasance at Zinara, which prompted the
Ministry of Transport and Infrastructural Development to commission a team to
study the report and come up with actionable recommendations.
The experts mainly raised the red flag on contracts entered
between Zinara and Univern for the vehicle licensing system and the
computerisation of the tolling system, transit system, road access, radio
licence and fuel levy.
The parastatal reportedly engaged Univern in 2012 to
computerise the vehicle licensing system without going to tender. The system was also supplied without specifications.
Univern levied an 18,5 percent commission on gross revenues
— excluding value added tax (VAT) — accruing from the licensing system. As a result, the company was paid over US$36,5 million in
the four-year period through to 2016.
“It is the considered view of the investigating team that
the agreement is prejudicial to Zinara as the project did not go to tender,”
read part of the report compiled by the experts and seen by The Sunday Mail.
“Furthermore, Zinara does not have rights of ownership of
the vehicle licensing system, according to the agreement. This means that if
Univern is to be removed as the supplier of the system, the vehicle licensing
process in the country will collapse as Univern will move out with the current
system,” added the report.
The parastatal even shelled out more than US$30 million in
commissions to the same company for the computerisation of all toll collections
around the country.
A commission of 16 percent on gross revenues was charged
for the deal.
However, a separate arrangement for the management of the
tolling system on the Plumtree-Bulawayo-Harare-Mutare highway — which was
administered by Intertoll — was charging a 5 percent commission for the system.
As a result, Intertoll received US$9 million in the same
period for a system that the experts say is actually “more efficient than that
of Univern”.
It is believed Zinara could have been prejudiced US$20,7
million in the Univern deal.
In addition, more than US$43 million was paid in commission
for transit fees and fuel levy collections in the 2012-2016 period.
Overall, Univern was paid US$110 million for the services. Controversy was also unearthed in the supply of graders for
use by road authorities around the country.
Initially, Univern won a tender to supply 40 graders;
however, Zinara ended up purchasing an additional 40, purportedly under the
same conditions.
The graders did not meet the set specifications and,
notwithstanding overpaying by more than US$1,2 million for the contentious
equipment, it could not be ascertained whether the graders were new or not.
Road authorities actually complained about the poor
performance of the graders.
Government has now been advised to either review or cancel
the contracts “to ensure that Government does not continue to be prejudiced”.
They also want the Plumtree-Bulawayo-Harare-Mutare contract
to be reviewed over unexplained cost escalations, which resulted in the project
being valued at US$464 million from the initial US$206 million, representing a
125 percent increase.
Most of the sub-contractors engaged and project reviews
were reportedly done “behind Government’s back”.
Zinara board chairperson Engineer Michael Madanha told The
Sunday Mail some of the contracts are actually being reviewed. “We are reviewing all contracts with Zinara as most of them
are very unfavourable . . .
“We actually started our contracts review with those on
vehicle licensing and tolling . . . we are engaging a transactional advisor to
negotiate the deals. Both parties are agreeable to negotiate.”
Some of the contracts that are being reviewed include those
that were unprocedurally signed when Zinara circumvented local authorities and
directly engaged contractors, most of whom did sub-standard work.
Investigators say these companies have to pay back the
money.
“Local contractors who prejudiced Zinara and Government
through non-performance or sub-standard performance be made to compensate
Government,” reads part of the recommendations.
The previous board also stands accused of approving the
elevation of staff who had no qualifications.
Even former chief executive officer Mr Frank Chitukutuku’s
qualifications could not be authenticated by forensic auditors as personal
files were not released.
Further, senior members of staff paid themselves allowances
that were not approved by the board and were contrary to their contracts of
employment.
Government has since been advised to conduct a lifestyle
audit of Zinara staff and to demand reimbursement from members of the previous
Wilfred Ramwi-led board who were overpaid.
Action on falsified qualifications by some of the staffers
is also being demanded. Sunday Mail
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