Turnall loses US$16m deal

on claims that the firm used imported chrysolite asbestos to make the pipes.
The Zimbabwe Stock Exchange-listed firm has taken issue over the contract termination, insisting it was not allowed to participate when Zinwa sought new suppliers, who were importing the pipes from South Africa.
But most crucially the firm fears it might face challenges sustaining its Bulawayo factory, which employs over 250, and manufactured AC pipes for Government’s Mtshabezi, Beitbridge and Wenimbi projects.
Zinwa spokesperson Mrs Majorie Munyonga said Turnall failed to meet the terms of the contract to supply water pipes made of local chrysolite asbestos.
“The move to terminate the relationship with Turnall was purely on the basis that the authority (Zinwa) felt that pipes made from imported asbestos fibre were not suitable for use in ferrying drinking water,” said Mrs Munyonga.
She said the company was awarded a US$13 million contract in 2007 to supply AC water pipelines for the Mtshabezi Dam water pipeline, but the project had stalled in 2008 at the height of Zimbabwe’s economic meltdown.
It was later awarded another contract to supply pipes for Wenimbi valued at US$2,2 million, and Beitbridge US$900 000, but the firm could have lost this potential revenue.
Under the contract-tender number 00775, Turnall had supplied about 432 pipes to Zinwa until the economy went into a decline in 2008.
After introduction of multi-currencies in 2009 the Mtshabezi project resumed and Turnall were engaged to resume supplies. But the company allegedly said it could no longer supply pipes made from local asbestos fibre.
Zinwa claimed Turnall later indicated it was now able to manufacture the pipes with asbestos fibre from Shabanie and Mashava Mines. They were paid and US$1,5 million as deposit to supply the pipes under the contract.
Zinwa now accuses Turnall of reneging on the deal, claiming it could only make the pipes from imported asbestos, which Zinwa declined.
“The authority acted in terms of its mandate as enshrined in the ZINWA Act and moved in to protect the health of thousands of Zimbabweans who are set to benefit from the completion of the Mtshabezi Pipeline,” said Zinwa.
But Herald Business was told that Turnall, in a bid to prove the imported chrysotile asbestos fibre was the same as that mined locally, took the pipes for testing by the University of Zimbabwe and the Standards Associa-tion of Zimbabwe.
After terminating the contract Zinwa reportedly went back to the State Procurement Board, which invited new suppliers and awarded the contract to what it called “Zimbabwe’s sole PVC pipe manufacturers, Pro-Plastics”.
SPB executive chairman Mr Charles Kuwaza said the dispute centred on a technical aspect that Turnall and Zinwa had to agree on.
Turnall managing director Mr John Jere confirmed the contract termination, but declined to discuss the matter, as they were engaging Zinwa on the subject.
“They are our partners whom we will need to return to for business in future,” he said. “As such, we are engaging them as partners to discuss the matter.”
But sources said Turnall was riled by the fact that after its contract was terminated the firm was not given an opportunity to re-tender for the project.
“As the initial supplier Turnall expected to be called to participate in the tender. They should have at least asked what the price was and terms of delivery and probably on the basis of that decide Turnall could not continue,” said the sources.
They said the company would have taken no exception if it had been excluded on merit rather than being completely left out of the tender process.
The firm also reportedly felt that allowing the importation of pipes “flew in the face” of Government’s policy to ensure that local companies, particularly those in Bulawayo, did not close due to financial constraints.