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Harare Bureau
Zesa Holdings’ irregular appointment of a chief strategist, Dr Denis Magaya, for one of its subsidiaries – PowerTel in defiance of a State Procurement Board resolution and the extension of the power utility’s chief executive officer, Engineer Josh Chifamba’s term of office has raised a stink in government.
It is understood that the Ministry of Energy and Power Development was aware of Eng Chifamba’s complicity in Dr Magaya’s irregular recruitment – given that the former was on the PowerTel board that flouted the tender procedures, but Minister Dzikamai Mavhaire still went ahead to extend his term of office by another three years.
Appointing management is usually the preserve of a board but it is non-existent at the power utility after Minister Mavhaire dissolved all the boards under his ministry recently.
There are indications that when the SPB turned down Powertel’s request to have RubieM Technologies, owned by Dr Magaya, implement the strategic and business plan, the PowerTel board including Eng Chifamba then decided to by-pass the SPB by engaging the expert as an individual and four supporting staff from his firm.
The SPB disqualified RubieM Technologies on condition that it was conflicted since Dr Magaya had drawn up the $30 million five-year strategic plan.
Sources told our Harare Bureau that despite engaging Dr Magaya as an individual and his supporting staff, the PowerTel board signed a contract with him on the terms of the initial tender application.
Another source added that the PowerTel board had corruptly transformed the tender into an employment contract. A document prepared by the Ministry of Energy and Power Development claimed that although Dr Magaya was technically sharp, his strategic initiatives were hardly bearing fruit.
“PowerTel’s revenues are dwindling at an alarming rate and in three months or so, it might not be able to pay salaries. Procurement of equipment and resources through his leadership is chaotic.
“Magaya is a person who has very poor management skills and (sic) strong technical skills. On the people’ side, he has eroded managers’ confidence,” claimed the ministry.
The document further claimed that Dr Magaya had defied his contractual obligations to the point of securing a TelOne contract while working for PowerTel, thereby creating a conflict of interest.
Dr Magaya’s contract shows that he was entitled to a fixed monthly salary of $26,000 for 2012 with a performance bonus ratio of 0,77 percent for the first year.
PowerTel in 2012 made a total $20.2 million in revenue meaning that Dr Magaya and his staff members got about $900,000 collectively.
If RubieM had been awarded the tender, the firm would have earned about $1,1 million dollars for 2012.
Online Reporter
Londile Moyo