The State Procurement Board (SPB) has been implicated in a $50 million Universal Services Fund (USF) scandal after it, in 2012, approved an unregistered company, Likusasa Engineering & Contracting (Pty) Ltd, to carry out the fund’s infrastructure development projects at 11 sites across the country.
Paidamoyo Muzulu
The multi-million dollar deal was approved by former Transport minister Nicholas Goche (now holding the Public Service portfolio).
The USF is a fund that was created under the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) to collect a levy from the gross revenue of all telecommunications firms for use to develop communication infrastructure in remote areas shunned by investors.
Investigations by NewsDay over the past few weeks have shown that Likusasa was awarded the multi-million-dollar contract to develop passive infrastructure although it was not registered at the Companies Registry in accordance with SPB regulations.
Potraz director-general Alfred Marisa confirmed that the contract was awarded to Likusasa with the approval of Goche and the SPB.
Marisa said: “With respect to the passive infrastructure project, Potraz, as the trustee of the USF, identified the areas to benefit from the project in consultation with operators.
“The minister (Goche) approved the recommendations as required by the law. Awarding of tenders was done by the State Procurement Board.”
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Goche yesterday said he remembered that he had dealt with the issue during his tenure.
He said: “Potraz recommended a number of companies for the projects. There were several. Some did the stations for Econet, NetOne and for Telecel. However, I can’t remember those things off-hand.”
Upon further inquiries, Goche went ballistic.
“Write what you want, write whatever nonsense. I don’t know why in the first place I entertained your questions,” Goche erupted before cutting off the conversation.
SPB chairman Charles Kuwaza was not immediately available for comment. He was said to be in a series of meetings.
According to Potraz, the passive infrastructure project involved, among other things, construction of access roads, towers, equipment rooms, solar power installations and security fence at Chidodo, Chilo, Chiodza, Dlamini, Malipati, Neuso, Pfungwe, Zibungululu, Hwangwa and Manama. During the investigations, it also emerged that another company, E- Learning Solutions, was awarded a tender for the Connect-a-School Connect-a-Community project.
The initial contract was to computerise 60 schools. The Connect-a-School Connect-a-Community project involved provision of computer laboratory furniture and fittings, solar back-up power installations, 60 laptops per school loaded with e-learning educational material, Internet connectivity and training of teachers in rural schools.
NewsDay, however, managed to track down the director of E-Learning Solutions at his offices in Harare. The company is operated by the Masimirembwa brothers, Itai and Stewart. Itai confirmed that his company had been awarded the contract to computerise 60 schools across the country and so far had been to three provinces: Masvingo, Matabeleland North and Matabeleland South. Marisa, however, did not give the value of the tenders awarded to the two companies.
However, NewsDay established that both companies Likusasa and E- Learning Solutions’ files were not with the Companies Registry. NewsDay on Monday sought the CR14 forms (listing directors and secretary) of the two companies at the Companies Registry without success. The Companies Registry officials confirmed that Likusasa was not a registered company while E- Learning Solutions was registered, but its file was missing.
Under the Companies Act, all companies should be registered and should deposit copies of their CR14 forms, Memorandum of Articles, Articles of Association and Annual Returns with the Companies Registry before they could be considered for government tenders.
The USF levies were also used for the procurement of satellite phones and airtime for use by the Civil Protection Unit, targeting flood-prone areas.
The tenders, according to Potraz, were given to Japanese and South African firms.
NEC of Japan supplied backhaul equipment while SatCom of South Africa got the contract to supply satellite phones.
NewsDay, however, failed to get the 2012 audited statements of the fund.
