Own Correspondent

Businessman Kuda Tagwirei has come out gun blazing over revelations that he has been making huge profits in the acquisition of ZUPCO buses for goverment through a company Landela Investments which is reportedly linked to him.

The businessman has demanded for a apology with a thought to take legal action from weekly publication The Zimbabwe Independent for making the revelation.

The same media last month tried to follow up on the deal with government and all ministers were evasive after being asked to explain the details of the murky deal between the government and Landela Investments (Pvt) Ltd.

The Zimbabwe Independent broke the news that Landela Investments has been acquiring buses for the Zimbabwe United Passenger Company (Zupco) mass public transportation system, contrary to claims by public officials that the vehicles were directly sourced by the government.

When the media house sort explanations from goverment on the issue, all the relevant ministries in the bus deal said that they were not involved in the agreement in which the state-run Central Mechanical Equipment Department (CMED) has a hire purchase agreement with Landela.

Although Zupco is under the Ministry of Local Government and Public Works, the minister, July Moyo, curiously refused to comment and referred the Independent to the Ministry of Transport and Infrastructure Development, which controls the CMED.

“Yes, Zupco is under my ministry, but this is a CMED issue and that is under the Ministry of Transport. Zupco also rents from over 20 companies and it is difficult for me to know the details of every agreement,” Moyo said.

Contacted for comment, Transport minister Joel Biggie Matiza said the Finance ministry was the right authority to talk to regarding the bus agreement.

“It is the Ministry of Finance that is responsible for purchases and the tendering. What is there now is there,” Matiza said.

As the astonishing merry-go-round continued, the Finance ministry also shifted the responsibility to comment on the matter to other government departments, including the Procurement Regulation Authority of Zimbabwe (Praz).

“No, the Ministry of Finance is not involved in the purchase, we only approve payment through normal channels,” Finance ministry spokesperson Clive Mphambela said.

“We are not the right people to talk to in terms of procurement. We have Praz. But let me also just say when government procures, we do not usually import something directly, as in the case with fuel and other things.”

Government officials have in the past claimed that the buses already belonged to Zupco, with Mnangagwa commissioning the fleet amid pomp and fanfare.

The Independent has also learnt that Landela paid only 20% for the imported buses with the 80% balance payable a year after delivery. The buses were bought through a dealer, FAW Zimbabwe, which has offices in Harare.

At the time Landela imported the buses, the Civil Service Commission also acquired 20 new buses from the same supplier to boost its fleet.

In a letter to the Zimbabwe Revenue Authority (Zimra) dated March 2, 2020, Massbreed Investments (Pvt) Ltd, which trades as FAW Zimbabwe, named the importer of some of the buses as Landela Investments.

“We are aware that the vehicles are to be warehoused in our bonded warehouse in conformity with the Customs and Excise Regulations Section 69:2A regarding the operation of Bonded Warehouses,” a letter by FAW Zimbabwe director Kuda Muzvongi to the Zimra controller read. “Undertake to return signed proprietor’s report (Form 26), acknowledgement receipt of goods together with any discrepancies within five days of the date of the entry to the proper officer at the warehousing port.”

The buses imported by Landela were reported by state media to be part of a consignment of 1 000 buses ordered from China and 500 from Belarus.

Source: Zimbabwe Independent