Correspondent|SAKUNDA magnate Kuda Tagwirei is set to come under fire at the annual Zanu-PF conference in Esigodhini as some youths from the party are reported to be planning to demonstrate against him, a sure sign that tensions between President Emmerson Mnangagwa and vice-president Constantino Chiwenga have not been completely eased.
Placards denigrating the Sakunda boss have been leaked on social media. The party youths intend to use the to embarrass Tagwirei and Chiwenga, it is reported. Security is reported to be on high alert to thwart the protests against the businessman who is a close ally of Vice President Constantino Chiwenga.
The businessman came into the spotlight a few months back after Zanu-PF activist Acie Lumumba, real name William Gerald Mutumanje, gave him the moniker “Queen Bee” and claimed that he ran a cartel which was responsible for the country’s economic woes.
Former presidential adviser Christopher Mutsvangwa also claimed that Tagwirei was blocking efforts for the government to build a second fuel pipeline so that he could protect his own fuel monopoly. Mutsvangwa claimed that Tagwirei was the only person who was benefitting from the RBZ foreign currency allocations at the expense of tobacco farmers and gold miners.
The planned protest is reported to be the work of youths aligned to Mutsvangwa and possibly Gokwe-Nembudziya MP Mayor Justice Wadyajena who fell out with Tagwirei and has been a vocal critic of him on social media.
Wadyajena has clashed with Norton MP (INDEPENDENT) Temba Mliswa several times recently, amid counter-accusations Wadyajena was fighting from Mnangagwa’s corner with Mliswa being a proxy of Chiwenga and Tagwireyi.
Wadyajena, who is chairman of the Parliamentary Portfolio Committee on Lands, Agriculture, Water, Climate and Rural Resettlement last week chased Mliswa who had barged into a committee meeting for an unspecified agenda, claiming he was sent by unnamed powers-that-be to represent their interests in the committee.
Wadyajena said: “We expelled Temba Mliswa from Agric Committee proceedings. He isn’t a Member and claims he represents ‘other’ interests. Mliswa is intent on spreading anarchy after his recent failure to procedurally chair the Mines Committee. What a disgrace! Kudos, Comm members, for standing firm!”
Political analysts insiders believe Mnangagwa sidelined allies of Chiwenga politically when he announced his new cabinet in September, giving key posts to loyalists such as Oppah Muchinguri (defence), July Moyo (local government) and Joram Gumbo (energy). His attempts to whittle down Chiwenga’s influence are now playing out on the economic front.
Industry insiders and state officials allege that Mnangagwa has interests in the fuel industry through Zuva Petroleum, a fuel importer and major industry player. He is also said to be in favour of a second pipeline to the country, supposedly backed by SA company Mining Oil & Gas Services (Mogs), which would undercut the extensive hold that businessman Kudakwashe Tagwirei has on the country’s energy sector.
Chiwenga is believed to have his own interests in the sector through Tagwirei, a former Mnangagwa ally and CEO of Sakunda Holdings. His company’s subsidiary, Sakunda Energy, is jointly owned by Puma Energy, the SA subsidiary of international oil group Trafigura.
To understand the tensions, one needs to understand the structure of the Zimbabwean fuel industry. Importers bring fuel into the country through the single existing pipeline before selling it on to wholesalers, which sell it on to retailers.
Because the importers don’t have the foreign currency to pay for imports, the government allocates forex to the companies, though it’s unclear how the individual allocation is determined. The fuel traders build these costs into their price, which is in local currency (bond notes).