<vote /> ZPC has revealed that Energy and Power Development Minister Samuel Undenge pressured them to pay Chivayo's Intratek Zimbabwe $5 million in the absence of a bank guarantee to protect public funds. It has also emerged that ZPC refused to pay Chvayo in the absence of a bank guarantee for five months before yielding to pressure from the minister.

Chivayo admitted to receiving payment without a guarantee as he cited that it was difficult for a local company to raise a guarantee hence the decision to violate the contract. Clause 4.2 of the contract specifies the need for a performance bond to protect ZPC against any loses in the event Intratek Zimbabwe defaulted on the project.

However Undenge has denied claims of interfering and accussed ZPC management of failing to follow laid down procedures. He said that,

"It is not true that I put pressure on ZPC management to pay Intratek. Management is aware of the laid down procedures they should follow when making any payment. Public funds have to be safeguarded."

Read full story on The Herald

Latest News

Latest Profiles

<comments />