Zesa flouts tender laws

Felex Share Harare Bureau—
Zesa Holdings has started selling prepaid electricity tokens through three government enterprises in deals not sanctioned by the State Procurement Board. Thirty-eight other companies had bids for the same job, but Zesa settled on ZB Bank, NetOne and CBZ Bank. Zesa Holdings spokesperson Fullard Gwasira said yesterday that they would introduce electricity scratch cards this month.

The power utility has also introduced an electronic vending system (e-vending) so that consumers buy electricity via their mobile phones.
The vending system is provided through Zesa subsidiary PowerTel and its technical partner, E-Solutions.
The State Procurement Board twice cancelled the tender citing technical irregularities.

The deal has always been shrouded in controversy with Energy and Power Development ministry officials alleged to have vested personal interest in E-Solutions.
The Energy Ministry “handpicked” PowerTel, which created the distribution networks for sale of the tokens, after ordering the Zimbabwe Electricity Transmission and Distribution Company to cancel tender number ZETDC/HO 04/ 2013 that sought companies with expertise in provision of prepaid electricity vending.

PowerTel and E-Solutions had also submitted bids for the cancelled tender.
The other companies that submitted bids to become aggregators are challenging the legality of the cancellation of the tender, arguing that Chapter 22.14 of the Procurement Act does not give ZETDC authority to make such a decision.

Energy Minister Dzikamai Mavhaire and his deputy, Engineer Munacho Mutezo, have been accused by Zesa staff of having interests in E-solutions.
The two have consistently refused to discuss the deal in the media.

Zesa’s Gwasira said sale of electricity coupons through third parties would decongest the power utility’s banking halls and make purchases convenient.
“Zimbabwe Electricity Transmission and Distribution Company, a subsidiary of Zesa Holdings has introduced an electronic vending service (e-vending) that will enable customers to purchase prepaid electricity through cellular phones, third party over-the-counter vending as well as through ZB’s e-wallet and NetOne’s One Wallet,” he said.

Prior to this, the purchase of pre-paid electricity tokens was only done at Zesa banking halls and at two OK Supermarkets in Harare, as well as at a ZETDC desk at a  TM Supermarket in Mutare.

The tokens were sold during working hours.
“The e-vending product which is running under the theme Powerplus, will ensure more convenience through keeping queuing to a minimum as most customers would be in a position to purchase electricity through Short Message Services (SMS) and over the counter of transactions from vendors that have been engaged by ZETDC,” said Gwasira.

He said more state enterprises would soon become aggregators.
Gwasira defended the selection of PowerTel, saying it had the necessary technical capacity.

Reasons for the cancellation of the initial tender were not clear, with Minister Mavhaire on one hand claiming there had been deep-seated corruption, while the SPB and ZETDC cited technical irregularities.