HomeNewsAgribank tender refloated

Agribank tender refloated

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The government has re-advertised the financial advisor’s tender for Agribank after the initial process was cancelled under unclear circumstances amid reports the development could delay the bank’s restructuring exercise.

Agribank is among 10 parastatals the government earmarked for privatisation in 2010. The first tender was floated in March this year through the State Procurement Board scouting for legal and financial advisors to undertake the restructuring exercise.

According to the Government Gazette published last Friday: “Request proposal for financial advisors for the restricting of Agribank. Bidders must exclude banking institutions operating in Zimbabwe or those with interest in banking institutions operating in the country.”

The submissions are expected to reach the State Procurement Board by August 7.

State Enterprise Regulatory Authority executive director Edgar Nyoni yesterday said several investors had shown interest in acquiring a stake in Agribank.

“We are retendering the position of financial advisors after the initial one was cancelled by the State Procurement Board early this year,” he said.

“Bidders did not fulfill certain requirements.

Advisors will assist us in identifying the investors.”

Early in the year, Nyoni said the restructuring process of the bank would take six months. It would result in the government shedding 49% to private investors.

Last year, Finance minister Tendai Biti and his State Enterprises and Parastatals counterpart Gorden Moyo, expressed concern at the slow pace of restructuring of entities that continued to drain the fiscus.

“Despite a number of pronouncements to restructure public enterprises, very little progress is being made in this regard,” Biti said.

“Furthermore, the inefficiency of these parastatals is also compromising overall economic performance due to the shortcomings associated with underperformance in service delivery.”

Moyo said delays in the restructuring of parastatals were caused by bureaucracy in government.

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