$5m Chivayo scam: Undenge says innocent

Claims innocence … Energy minister, Samuel Undenge

Energy minister Samuel Undenge denies any involvement.

ZPC management is accused of paying the convicted fraudster’s firm without providing a performance guarantee protecting public funds.

Undenge has since denied reports that he pressured ZPC to make the payment saying the managers acted of their own accord and should face the music for doing so without ensuring there were mechanisms to recover the funds in the event of Chivayo’s firm failing to fulfill its obligations.

“I would never do that because I called the ZESA management to a meeting where we wanted to know how they were going to manage the financial risk,” the state media quoted Undenge saying.

“I stated that they should pay any contractor against performance and ensure there are performance bonds in place because we are dealing with public funds.”

“I asked ZPC to prepare a paper stating the mechanism they will use to guard against financial risk. That paper is still to come. Anything contrary and what has happened is against the ministry’s expectations,” claimed the minister.

With only topographical survey done on the $200 million project, ZESA and the ZPC board are now calling for a forensic audit of all the power deals involving Chivayo’s firm.

The $4, 8 million was meant to cover other things such site clearance, feasibility studies and administrative costs.

The state media Monday quoted ZESA holdings CEO, Josh Chifamba, accusing ZPC managers of “bungling”.

“We have a code of conduct as a company and it is going to be applied to deal with staff who might have been negligent,” said Chifamba.

According to the report, the ZESA holdings Audit and Risk Management committee last week summoned the ZPC managers over the issue.