The Sunday Mail
Brian Chitemba
The Zimbabwe Anti-Corruption Commission is investigating 40 serving and former Harare councillors and executives over a US$13 million tender to rehabilitate Firle Sewage Works. Information gathered by The Sunday Mail last week shows that Zacc opened the probe two months ago, with indications that 32 councillors and eight top officials could have connived to prejudice ratepayers of millions of dollars.
In 2011, Harare City Council is said to have unprocedurally awarded Energy Resources Africa Consortium a US$13,8 million tender when the company was not registered in accordance with Zimbabwe’s laws.
Zacc investigators told this publication that the net was fast-closing in on some councillors who served under former mayor Mr Muchadeyi Masunda’s administration and some executives led by ex-town clerk Dr Tendai Mahachi.
The investigators said Mr Masunda’s was not under investigation.
The matter came to light after a special investigation committee comprising lawyer Mr Francis Nyamayaro; Engineer Israel Rwodzi; financial specialist Mr Clifford Mteneri; and councillors Joshua Nyatsuro, Joseph Rose, Samuel Chinyowa and Luckmore Mangawa alleged procurement procedures had been thrown out of window.
The committee established that Erac was awarded the tender ahead of Specgas, whose charges were US$1,5 million lower.
The then Harare Water director Eng Christopher Zvobgo told the committee that Specgas lost because it did not have a bid bond.
However, the committee determined that Erac, which had a bid bond, was unregistered and had no tax clearance.
Zacc is also looking into allegations of possible tax evasion, externalisation, forgery, perjury, contract fraud and collusion by City of Harare and Portriver Investments which was part of Erac.
This came to light after one of Erac’s directors, Mr Dave Mashayamombe, blew the whistle on his former partner in Erac, Mr Harold Crown of Portriver Investments.
According to documents seen by The Sunday Mail, Mr Mashayamombe’s lawyer Mr Gerald Mlotshwa wrote to Zacc on December 5, 2016 saying, “We refer to proceedings between litigants in several High Court cases: HC9749/15, HH945-15, HC 1437/16, HC 5388/16, HC 11841/16. Pleadings and evidence filed in the court record have given rise to our client’s complaint of possible tax evasion, externalisation, forgery, perjury, contract fraud and collusion by the City of Harare and a company called Portriver Investments (Private) Limited wholly owned by a South African entity.
“… The court record filed therein, however, exhibits evidence of possible criminal acts that contravene Sections 136, 137, 171, 174 and 183 of the Criminal Law (Codification) Act (Chapter 9:23).”
In his judgment in a dispute between Messrs Mashayamombe and Crown, Justice Owen Tagu raised concern over non-payment of taxes to Zimra by Mr Crown’s Portriver Investments.
“… What is clear as day light is that the respondents (Mr Crown and Portriver Investments) want to continue trading and receiving large sums of money without paying taxes. This is unacceptable. There may be disagreements over other issues that resulted in the issuance of summons which is pending but that does not stop the parties from complying with the mandatory requirements of the law.”
Harare city councillors and officials also stand accused of manufacturing minutes of a meeting between the local authority and Mr Crown.
According to a letter dated June 29, 2016 by Mr Chris Mutangadura of the National Prosecuting Authority to the Department of Immigration concerning Mr Crown’s immigration status, allegations of fraud and perjury were also raised.
He wrote, “Pleadings filed in the court record have given rise to a complaint of perjury and fraud as against some employees of City of Harare who alleged that Mr Harold Crown participated in a meeting with City of Harare employees. Those minutes are allegedly manufactured to influence the outcome of the proceedings.
“In order for us to determine whether or not there is a criminal offence as suspected, we kindly request your good office to provide us with details of entry or exit of Mr Harold Crown from 1 October 2015 to 10 October 2015. Mr Crown is a South African citizen with I.D Number 6711225167085 date of birth 22 November 1967. This period alone will highlight the details of whether or not the alleged meeting between Mr Crown and City of Harare employees took place in Harare on the 6th of October 2015.”
On July 1, 2016, Mr P Kambarami of the Department of Immigration responded to Mr Mutangadura saying there was no evidence that Mr Crown was in Zimbabwe between October 1, 2015 and October 10, 2015.
“Diligent checks on both our manual and electronic systems for both entry and exit records were made. Harold Crown is not appearing in either for the period cited, that is 1 October 2015 to 10th December 2015,” he said.
A council special investigation committee raised a red flag regarding Mr Crown’s contracts given that he was involved in Crowborough Works via Cemo Pumps when the main contractor was Sidal Engineering, and on Firle via Port River with Erac as the main contractor.
Investigators suspect that Harare councillors and executives were conniving to implement some of the projects for their personal benefit.
