HEALTH and Child Care Minister Dr Obadiah Moyo, who was
arrested on Friday for alleged involvement in NatPharm’s non-procedural
contract with Drax International LLC to supply medicines and surgical sundries,
was released on $50 000 bail when he appeared before Harare magistrate Munamato
Mutevedzi yesterday.
He was remanded to 31 July. The State led by Clemency
Chimbare did not oppose bail but successfully proposed stringent bail
conditions. Dr Moyo was ordered to reside at his given address, report to the
police three times a week, not to interfere with witnesses, surrender his
passport as well as title deeds for his wife’s Eastlea property.
Dr Moyo is facing three counts of criminal abuse of duty as
public officer as defined in Section 174 (1) (a) of the Criminal Law
(Codification and Reform) Act, Chapter 9:23. On count one, the State alleges
that sometime in March 2019, the accused was approached by Delish Nguwaya — a
country representative for Papi Pharma LLC — who presented a letter of interest
to supply medicines and medical sundries under a US$15 million loan facility.
“After receiving the letter from the company, the accused
called the former Permanent Secretary for the Ministry of Health and Child
Care, Rtd Major-General Dr Gerald Gwinji, and told him to process the paperwork
and award the tender to Papi Pharma LLC under direct purchase,” reads the
charge sheet.
“Acting on the accused’s orders, Dr Gwinji on 20 March 2019
wrote a letter to Treasury requesting that due diligence be taken on Papi
Pharma LLC before it is contracted for business by the Government of Zimbabwe.”
It is further alleged that the accused, using his position
and influence, verbally directed Dr Gwinji to engage Papi Pharma LLC before a
response on due diligence was received from Treasury. On March 25 2019, Dr
Gwinji is said to have received a response from Secretary for Finance and
Economic Development, Mr George Guvamatanga, requesting to be furnished with
comparative international prices for the various medicines outlined in the
schedule by Papi Pharma LLC.
Resultantly, Dr Gwinji directed NatPharm, through its
general manager Flora Nancy Sifeku, to engage Papi Pharma LLC and proceed with
the procurement process. NatPharm then used direct purchase method on May 29
2019 and awarded tender number NAT DP 11/19 to Papi Pharma LLC before due
diligence was concluded.
On 14 June 2019, an adverse report was received from the
Secretary for Foreign Affairs and International Trade, Ambassador James Manzou,
indicating that the company and its director, Klodian Allajbeu, were linked to
a terrorist group known as Gulen Movement.
The State argues that by causing the awarding of a tender
and entering into a contract with Papi Pharma LLC, Dr Moyo showed favour to the
company, causing a potential prejudice of US$15 million to Ministry of Health
and Child Care.
On count two, the State alleges that Delish Nguwaya, whom
the accused had dealt with representing Papi Pharma LLC, visited the accused’s
office on 22 August 2019 in the company of Ilir Dedja, a legal representative
of Drax Consult SAGL.
It is said that during their visit, Delish Nguwaya and Ilir
Dedja presented to the accused a letter of expression of interest to supply
medicines worth US$20 million under Drax Consult SAGL.
The accused then called the former Permanent Secretary for
Health and Child Care, Dr Agnes Mahomva, to his office and handed her the
letter of expression of interest for processing. Dr Mahomva then wrote to
Treasury requesting due diligence to be conducted on Papi Pharma LLC. According
to the charge sheet, on 19 September 2019, Mr Guvamatanga received a response
from the Office of the President and Cabinet to the effect that the business
activities of the company could not be ascertained.
Guvamatanga then wrote a letter to Dr Mahomva on 25
September 2019 advising against engaging Drax Consult SAGL due to the adverse
due diligence report. The State further alleges that the accused phoned Mr
Guvamatanga indicating that new information had been received and that Drax
Consult SAGL had been cleared when in fact the company’s activities were yet to
be ascertained.
Mr Guvamatanga refused to act on the basis that he had no
other information disputing the letter dated September 19 2019.
“The accused, however, exerted pressure on his
subordinates, particularly Dr Mahomva to award a tender to Drax Consult SAGL
for the supply of medicines to Zimbabwe through NatPharm during meetings he
held in his office with officials from Ministry of Health and Child Care, NatPharm
and representatives from Drax Consult SAGL,” reads the charge sheet.
“On 11 December 2019, NatPharm and Drax Consult SAGL
entered into a contract under tender number NAT DP 19/19 and NAT DP 20/19.”
Drax Consult SAGL supplied medicine and surgical sundries
worth US$2,7 million, of which US$2 million was paid by Treasury into Drax
Consult SAGL bank account in Hungary. The State argues that by causing NatPharm
to enter into a contract with Drax Consult SAGL in circumstances where due
diligence report was adverse, the accused showed favour to Drax Consult SAGL,
causing a potential prejudice to the State of US$17 million.
On count three, the State alleges that the accused, having
dealt with Papi Pharma LLC and Drax Consult SAGL, was aware of the fact that Papi
Pharma LLC and its directors had an adverse report.
Dr Moyo received a letter of interest from Drax
International LLC to supply medicines and surgical sundries worth US$40 million
and verbally directed Dr Agnes Mahomva to urgently process the awarding of a
tender to Drax International LLC. Acting on the accused’s instruction, Dr
Mahomva referred the letter of interest to NatPharm for processing.
“The accused, well knowing that Drax Consult SAGL had not
performed fully as per terms of the contract under tender numbers NAT DP 19/19
and NAT DP 20/19, caused another contract to be entered between NatPharm and
Drax International LLC under a US$40 million loan facility,” reads the charge
sheet.
“This was despite the fact that Treasury had not been
involved before the contract was entered into. As a result, Treasury ordered
the cancellation of the contract, which was done by NatPharm.”
Under tender number NAT DP 04/20, Drax International LLC
supplied Covid-19 test kits valued at US$987 720, which were procured after the
contract was cancelled. It is also alleged that on May 8 2020, the accused
phoned Mr Guvamatanga instructing him to write a letter to the Ministry of
Health and Child Care to initiate the release of Covid-19 test kits which were
held at Robert Gabriel Mugabe International Airport.
The Covid-19 test kits had been supplied under the
cancelled Drax International LLC contract worth US$40 million. On the same
date, the accused personally handed over an invoice worth US$987 720 to Mr
Guvamatanga.
“To influence acceptance of Covid-19 test kits under Drax
International LLC’s cancelled contract and urgent payment, the accused claimed
that there were 15 000 Covid-19 test kits at Robert Gabriel Mugabe
International Airport. Upon visiting the airport, Mr George Guvamatanga
discovered that there were around 3 700 Covid-19 test kits which Drax
International LLC had exported to Zimbabwe.”
Basing on the invoice, Mr Guvamatanga wrote a letter to
Secretary for Health and Child Care, Dr Mahomva, authorising for the release of
the Covid-19 test kits subject to review of the prices and reiterated the
contract remains cancelled.
“The accused acted contrary to or inconsistent with his
fiduciary duty, that of acting in the best interest of the State, by causing
the awarding of tender and contract to Drax International LLC under tender
number NAT DP 04/20 and by causing an acceptance of Covid-19 test kits supplied
by Drax International LLC well knowing that the contract had been cancelled.
The accused’s actions showed favour to Drax International LLC by causing the
awarding of tender number NAT DP 04/20 well knowing that its sister companies,
Papi Pharma and Drax Consult SAGL had failed the due diligence process.”
The State, therefore, alleges that it suffered a potential
prejudice of US$40 million. Sunday Mail
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