Difference between revisions of "Sakunda Holdings"

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Under the deal Sakunda owned 51% of the company with Puma owning 49%.<ref name="Lynton">, Lynton-Edward, [http://lynton-edwards.com/ctc-approves-sakunda-takeover-deal/ CTC approves Sakunda takeover deal], ''Lynton-Edwards Stock Brokers'', published: April 30, 2015, retrieved: June 9, 2016</ref>
 
Under the deal Sakunda owned 51% of the company with Puma owning 49%.<ref name="Lynton">, Lynton-Edward, [http://lynton-edwards.com/ctc-approves-sakunda-takeover-deal/ CTC approves Sakunda takeover deal], ''Lynton-Edwards Stock Brokers'', published: April 30, 2015, retrieved: June 9, 2016</ref>
  
==200 Mega Watt Project==
+
==Dema Power Plant==
  
In January 2016, the [[Zimbabwe]]an government approved Sakunda's acquisition of 200 mega watt emergency diesel power plant at [[Dema]] substation. Sakunda partnered with ARUP, Energyst, Aggreko and Trafigura. The project is to be financed by [[Commercial Bank of Zimbabwe Holdings]], Stanbic Bank and Ecobank. Grant Thornton would come in as project accountants and Mhishi Legal Practice as legal advisors. The project was implemented to deal with [[Zimbabwe|Zimbabwe's]] power crisis that had worsened by decreasing electricity generation at [[Kariba]] Power Station due to diminishing water levels at [[Kariba]] Dam.<ref name="Herald">, Walter Muchingura, [http://www.herald.co.zw/govt-awards-sakunda-200mw-tender/ Govt awards Sakunda 200MW tender], ''Herald'', published: January 7, 2016, retrieved: June 9, 2016</ref>
+
In January 2016, the [[Zimbabwe]]an government approved Sakunda's acquisition of 200 mega watt emergency diesel power plant at [[Dema]] substation. Sakunda partnered with ARUP, Energyst, Aggreko and Trafigura. The project is to be financed by [[Commercial Bank of Zimbabwe Holdings]], Stanbic Bank and Ecobank. Grant Thornton would come in as project accountants and Mhishi Legal Practice as legal advisors. The project was implemented to deal with [[Zimbabwe|Zimbabwe's]] power crisis that had worsened by decreasing electricity generation at [[Kariba]] Power Station due to diminishing water levels at [[Kariba]] Dam.<ref name="Herald">, Walter Muchingura, [http://www.herald.co.zw/govt-awards-sakunda-200mw-tender/ Govt awards Sakunda 200MW tender], ''Herald'', published: January 7, 2016, retrieved: June 9, 2016</ref>
  
 +
An alternate version of this ''approval'' is interesting.
 +
Sakunda did not bid for the contract. According to the ''Zimbabwe Independent'', APR Energy Holdings, the original winner of the contract, “was later sidelined in favour of Sakunda after intervention by the President’s Office”. At the time, Sakunda was owned by a gentleman called [[Kudakwashe Tagwirei]]. He was ''a close associate of the ruling party, ZANU PF''. His business partner in the Dema Project project was [[Derrick Chikore]], brother of [[Simba Chikore]], husband to [[Bona Mugabe]], the then President [[Robert Mugabe]]’s daughter.
  
 +
It is important to note that Sakunda had no previous experience in the business of power generation. One of the tender requirements was that the successful bidder had to demonstrate experience in the field of power generation. After [[APR Holdings]] won the tender, they inexplicably lost it and it was given to Sakunda. So Sakunda sub-contracted a British multinational called [[Aggreko plc]], which has vast experience in the business. Sakunda hired Aggreko’s services for equipment and technical expertise to set up and run the project.
  
 +
Aggreko had participated in the tender process, and had therefore lost the bid to its American rival, APR. Tender documents showed Aggreko were “initially disqualified because the ‘bidder is non-compliant with mandatory technical requirements of the request for proposal’”. The winner had lost and the loser had now taken the contract, albeit indirectly, through Sakunda. Sakunda had won the contract in an irregular way. Aggreko formally announced to the stock market that it had won a three-year contract with Sakunda. Sakunda, not ZESA, was its client.
  
 +
At the time, it was said that ZESA would have to pay US$8 million in advance every month, for a period of at least 3 years. The Dema Project would produce electricity at a massive cost of 15.04c/kWh – very expensive compared to hydroelectricity at Kariba, which cost 4.11c/kWh, and thermal power from the Hwange Thermal Power Station, which was priced at 6.97c/kWh. Even imports were far cheaper with imports from Zambia costing 5.18c/kWh, and 5.66c/kWh from Mozambique’s Hidroeléctrica de Cahora Bassa (HCB). This is why ZESA had applied for an increase in tariffs by 49% - a cost to the consumer.
 +
 +
Moreover, under the deal, Sakunda would provide fuel for the project. But it had a special concession which meant it would import duty-free fuel. That’s no taxes at all.
  
 +
It later emerged that Sakunda had been bought by another multinational, [[Trafigura]], which has a heavy presence in the fuel procurement and distribution business. But [[Tagwirei]] has remained closely associated with the company which has been lauded as a key partner in the Command Agriculture programme, in respect of which [[Mnangagwa]] claims and is given much credit. <ref name=" BSR: A murky tale: The Dema Power Project Revisited"> [https://www.bigsr.co.uk/single-post/2018/10/22/BSR-A-murky-tale-The-Dema-Power-Project-Revisited  BSR: A murky tale: The Dema Power Project Revisited], Big Saturday Read, Published: 22 October 2018, Retrieved: 7 August 2019''</ref>
 +
<ref name="Dema plant: A case of sleaze and pollution"> [https://www.theindependent.co.zw/2016/10/07/dema-plant-case-sleaze-pollution/  Dema plant: A case of sleaze and pollution], The Independent, Published: 7 October 2016, Retrieved: 7 August 2019''</ref>
  
 
==References==
 
==References==

Latest revision as of 13:33, 12 September 2019

Sakunda Group Holdings
Sakunda.png
Agency overview
HeadquartersHarare
Footnotes
Contact Numbers: Landline: 04 755155,
04 578880,
04 771133,
04 751196,
04 754399,
04 770430,
04 757422,
04 753253,
04 751713,
04 772306,
04 772307

Sakunda Holdings is a privately owned Zimbabwean company governed by the laws of Zimbabwe and its Memorandum of Association and Articles of Incorporation. It has three distinct operating divisions namely Sakunda Energy, Sakunda Trading and Sakunda Logistics.


Establishment

Sakunda was formed in 2005 by Kudakwashe Tagwirei.[1][2]

Subsidiaries

Sakunda Energy

Sakunda Energy is responsible for the retailing and commercial business to government, parastatals and corporate clients.[3]

Sakunda Trading

Sakunda Trading is responsible for the procurement and importation of bulk fuel from reputable international oil traders and wholesale it to Oil Companies and bulk fuel buyers including Sakunda Energy.[3]

Sakunda Logistics

This is a subsidiary that manages the movement of the fuel from importation to delivery to the eventual consumer.[3]

Organisation Structure

Sakunda structure.jpg

Trafigura Acquisation

In May 2014 it was announced that Dutch commodities gaint, Trafigura had acquired Sakunda Energy via it's South African subsidiary Puma Energy Africa Holdings where it has a 48.79% stake.[4][5]

Under the deal Sakunda owned 51% of the company with Puma owning 49%.[6]

Dema Power Plant

In January 2016, the Zimbabwean government approved Sakunda's acquisition of 200 mega watt emergency diesel power plant at Dema substation. Sakunda partnered with ARUP, Energyst, Aggreko and Trafigura. The project is to be financed by Commercial Bank of Zimbabwe Holdings, Stanbic Bank and Ecobank. Grant Thornton would come in as project accountants and Mhishi Legal Practice as legal advisors. The project was implemented to deal with Zimbabwe's power crisis that had worsened by decreasing electricity generation at Kariba Power Station due to diminishing water levels at Kariba Dam.[7]

An alternate version of this approval is interesting. Sakunda did not bid for the contract. According to the Zimbabwe Independent, APR Energy Holdings, the original winner of the contract, “was later sidelined in favour of Sakunda after intervention by the President’s Office”. At the time, Sakunda was owned by a gentleman called Kudakwashe Tagwirei. He was a close associate of the ruling party, ZANU PF. His business partner in the Dema Project project was Derrick Chikore, brother of Simba Chikore, husband to Bona Mugabe, the then President Robert Mugabe’s daughter.

It is important to note that Sakunda had no previous experience in the business of power generation. One of the tender requirements was that the successful bidder had to demonstrate experience in the field of power generation. After APR Holdings won the tender, they inexplicably lost it and it was given to Sakunda. So Sakunda sub-contracted a British multinational called Aggreko plc, which has vast experience in the business. Sakunda hired Aggreko’s services for equipment and technical expertise to set up and run the project.

Aggreko had participated in the tender process, and had therefore lost the bid to its American rival, APR. Tender documents showed Aggreko were “initially disqualified because the ‘bidder is non-compliant with mandatory technical requirements of the request for proposal’”. The winner had lost and the loser had now taken the contract, albeit indirectly, through Sakunda. Sakunda had won the contract in an irregular way. Aggreko formally announced to the stock market that it had won a three-year contract with Sakunda. Sakunda, not ZESA, was its client.

At the time, it was said that ZESA would have to pay US$8 million in advance every month, for a period of at least 3 years. The Dema Project would produce electricity at a massive cost of 15.04c/kWh – very expensive compared to hydroelectricity at Kariba, which cost 4.11c/kWh, and thermal power from the Hwange Thermal Power Station, which was priced at 6.97c/kWh. Even imports were far cheaper with imports from Zambia costing 5.18c/kWh, and 5.66c/kWh from Mozambique’s Hidroeléctrica de Cahora Bassa (HCB). This is why ZESA had applied for an increase in tariffs by 49% - a cost to the consumer.

Moreover, under the deal, Sakunda would provide fuel for the project. But it had a special concession which meant it would import duty-free fuel. That’s no taxes at all.

It later emerged that Sakunda had been bought by another multinational, Trafigura, which has a heavy presence in the fuel procurement and distribution business. But Tagwirei has remained closely associated with the company which has been lauded as a key partner in the Command Agriculture programme, in respect of which Mnangagwa claims and is given much credit. [8] [9]

References

  1. , ABOUT US OVERVIEW, Sakunda Energy, published: No Date Given, retrieved: June 9, 2016
  2. , Zim energy tycoon rescues Chiyangwa, Weekend Post, published: June 17, 2013, retrieved: June 9, 2016
  3. 3.0 3.1 3.2 , ABOUT US OVERVIEW, Sakunda Holdings, published: No Date Given, retrieved: June 9, 2016
  4. , Chris Muronzi, Foreign giants take over fuel sector, Zimbabwe Independent, published: January 23, 2015, retrieved: June 9, 2016
  5. , Tafigura takes over Sakunda, Afrca Confidential, published: May 14, 2014, retrieved: June 9, 2016
  6. , Lynton-Edward, CTC approves Sakunda takeover deal, Lynton-Edwards Stock Brokers, published: April 30, 2015, retrieved: June 9, 2016
  7. , Walter Muchingura, Govt awards Sakunda 200MW tender, Herald, published: January 7, 2016, retrieved: June 9, 2016
  8. BSR: A murky tale: The Dema Power Project Revisited, Big Saturday Read, Published: 22 October 2018, Retrieved: 7 August 2019
  9. Dema plant: A case of sleaze and pollution, The Independent, Published: 7 October 2016, Retrieved: 7 August 2019


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