Despite establishing a procurement board to oversee government procurement processes, Zimbabwe continues to face reports of corruption and tenderpreneurship. The government’s procurement system serves as a feeding trough for those connected to political elites. This situation raises serious concerns about the integrity of public resource management.
Persistent Issues in Government Procurement
Numerous media reports have exposed ongoing issues in government procurement. They highlight how it remains a lucrative avenue for well-connected individuals. A recent public feud between Wicknell Chivhayo and Mike Chimombe illustrated how tenders are awarded, revealing the murky dealings in the procurement process. This case involved supplying biometric voter registration and voting materials for the Zimbabwe Electoral Commission (ZEC).
Questionable Tenders and Government Connections
President Mnangagwa’s administration has awarded many tenders for infrastructure development to questionable companies. Scrutiny often reveals these companies have links to government officials. The relationship between Chivhayo and Mnangagwa has been particularly controversial. Chivhayo’s failure to fulfill contracts, such as the ZESA Gwanda solar project, has raised eyebrows. His company, Intratek, secured a US$173 million tender for a 100MW solar project in Gwanda, yet little progress has been made. Chivhayo’s extravagant lifestyle has drawn public ire.
In a recently leaked audio, Chivhayo boasts of his close connection with President Mnangagwa. He revealed how he has survived solely on government tenders. Chivhayo’s revelations are concerning for ordinary citizens, especially those who work diligently from 8 to 5, while individuals like him exploit their connections to the highest office to milk money from state coffers.
The Dema Diesel Plant Debacle
Another example of dubious procurement is the Dema Diesel plant, awarded to controversial businessman Kudakwashe Tagwirei. Although Tagwirei delivered the plant, it was later revealed to be financially unsustainable. The project required more money to operate than the power it generated, rendering it a white elephant.
Exploiting Presidential Proximity
Controversial figures exploiting their proximity to President Mnangagwa to secure tenders or intimidate competitors is becoming more apparent. Mike Chimombe’s revelations about Chivhayo sidelining them from a US$40 million deal to supply voting material to the ZEC exemplify this trend. Leveraging his closeness to Mnangagwa, Chivhayo reportedly inflated invoices and used the proceeds for personal extravagances.
The Airport Road Scandal
Kenneth Raydon Sharpe’s Augur Investments received a tender to construct a 10km road from Harare’s central business district to Robert Gabriel Mugabe International Airport. The company failed to fulfill the contract, completing less than 2.7 kilometers. Nevertheless, it acquired land from the City of Harare for incomplete work.
Exemption of Companies from Public Procurement
President Mnangagwa’s move to exempt up to 21 companies from public procurement scrutiny has sparked controversy. Critics argue that Mnangagwa’s use of emergency powers to issue a Statutory Instrument, bypassing parliament, is an attempt to conceal corruption. These companies, across sectors like mining, telecoms, energy, and agriculture, were shielded under Statutory Instrument 156 of 2023, placing them under the Mutapa Investment Fund.
Concerns Over Transparency and Accountability
Mnangagwa defended exempting these companies to rejuvenate underperforming government entities. However, concerns about transparency and accountability persist. Vice President Constantino Chiwenga criticized low compliance with procurement laws at the Procurement Regulatory Authority of Zimbabwe’s inaugural annual conference in 2021. He identified crises and emergencies as major avenues for corruption. With public entities shielded from scrutiny, fears loom that this exemption could become a new avenue for looting by government officials.
The persistent issues in Zimbabwe’s procurement system underscore the urgent need for greater transparency and accountability. The current state of affairs suggests the system remains vulnerable to exploitation by those with political connections. This undermines public trust and the efficient use of state resources.