Three ZESA executives arrested over $35 million transformer equipment

Oct 5, 2018
Companies
Posted by Patrick Haddad

Three top officials at the Zimbabwe Electricity Supply Authority (ZESA) Holdings have been arrested over a missing $35 million order for transformer-making equipment.

According to police spokesman Assistant Commissioner Paul Nyathi, the executives in question are Joshua Chifamba, the ZESA Holdings CEO; Julian Chinembiri, the managing director of the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), and his finance director Thokozani Dhliwayo. They will be charged with criminal abuse of office.

The main charge relates to the $35 million transformer-making equipment that was delivered from India in 2014 to ZESA subsidiary ZENT. It was reported for a long time that there was no order placed by ZESA for the machinery, implying that some officials had corruptly acquired the machinery with the hopes of selling it to the company for personal gain.

The machinery was acquired at a time when ZESA desperately wanted to install transformers across the country. The power utility had planned to acquire machinery that would enable it to manufacture its own transformers for both domestic use and export.

The equipment has also incurred millions of dollars in storage and insurance costs in the years it has been stranded.

The trio are also accused of awarding a public relations firm owned by former Zanu PF politician Psychology Maziwisa and broadcaster Oscar Pambuka a contract without going to tender.

 

Source: PA Zimbabwe

Photo (for illustrative purposes): Electricity substation/ Michael Gaida/ Pixabay/ CC0 1.0

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