HARARE – The Zimbabwe Independent newspaper and Transparency International Zimbabwe Trust have gone to court to compel the government to release details of a bus supply deal with Landela Investments, a company linked to corruption-accused businessman Kudakwashe Tagwirei.
Landela reportedly purchased the buses for the state-owned Zimbabwe United Passenger Company (Zupco) at US$58,900 each and sold them to the government for US$212,962 each.
The Zimbabwe Independent says three ministers have refused to disclose details of the deal and has now turned to the High Court seeking an order for the release of the paper trail.
Finance minister Mthuli Ncube, local government minister July Moyo, Zupco and transport minister Felix Mhona are all cited as respondents in the application.
Zimbabwe Independent editor Faith Zaba said in an affidavit: “The applicants in this matter jointly seek an order from this honourable court in terms of section 6 (1) (b) of the Administrative Justice Act (Chapter 28:10), specifically for an order compelling local government and finance ministers to supply the applicants with written reasons for their refusal to provide information relating to the purchase of buses for Zupco cited as third respondent.”
Transparency International and the Zimbabwe Independent also applied for an order for costs against any of the respondents who may elect to oppose their application.
Zaba said the transport minister is simply cited because the outcome of the proceedings might affect his ministry.
The background to the application is that the state-run Herald newspaper on March 11, 2021, published an article titled, ‘65 more Zupco buses delivered’, further stating that many buses had been delivered from China to bolster Zupco’s fleet as part of the government’s efforts to provide affordable public transport.
During the same month, the Zimbabwe Independent had reported about the suspicious circumstances surrounding the acquisition of buses for Zimbabwe. The pertinent story linked the murky transaction to Landela, a company linked to President Mnangagwa’s adviser and petroleum tycoon Kudakwashe Tagwirei, who is under United States and British sanctions
The Zimbabwe Independent reported that the government had initially signed a hire purchase agreement with Landela but had subsequently decided to pay the company Z$863.2 million for 162 buses.
Landela thereafter sold each bus to the government for US$212,962 yet it had purchased the buses from China for US$58,900.
“It was this curious arrangement which prompted applicants to wonder about the nature of Landela. Accordingly, applicants sought to peruse the registrar of companies records relating to that company, but they were continuously reported by the companies registry to be missing,” said Zaba.
In May 2020, her paper had asked all the three cited ministers to shed more light on the details surrounding the purchase of the buses and the involvement of Landela. The three ministers distanced their respective ministries from the transaction.
Local government minister Chombo said the procurement of buses is handled by the Central Mechanical Equipment Department (CMED) which falls under the transport ministry.
The transport minister Mhona directed all questions to the finance ministry which stated that it only approves payment but is not involved in the purchase of buses.
Ncube allegedly told the newspaper that the Procurement Regulatory Authority of Zimbabwe (PRAZ) was responsible.
Zaba said this effectively means that the ministers have refused to disclose pertinent information regarding the purchase of buses yet the information is accessible to them.
She said the law allows her to make such an application compelling the respondents to give her information within a reasonable time.
The matter is yet to be heard.