Stephen T Chifamba
Harare (NewsoftheSouth) – Government’s lack of consistency has not only been exposed in its latest deal agreed with Landela Investments (Pvt) Limited for the purchase of buses meant for Zimbabwe United Passenger Company (ZUPCO) under the Mass Transport System, but has proven costly too.
The Government entered into an agreement to convert the lease agreement where Landela had supplied 162 buses to the CMED, and make it a purchase agreement.
Landela will sell the 162 consignment at the interbank rate for a total of ZW$863 million, a decision that will spare the Government more than US$1.6 million, when compared with procuring similar buses locally.
Sadly, the Government had already given the greenlight in a deal where FAW Zimbabwe supplied buses to the Public Service Commission (PSC) at a cost of US$223 000 each, before factoring duty and tax obligations.
With the Landela deal costing Government US$213 000 for each bus, the consequent difference of US$10 000 for the same bus is huge, especially in the prevailing economic circumstance.
When the news first broke out that the Government had agreed to the Landela proposal, there was outrage as some media sections carried analyses that claimed local procurement was cheaper than the Landela offer.
Part of the anger obtained from claims that there were underhand dealings going on with the name of businessman Kudakwashe Tagwirei thrown into the mix.
According to the social media rumours, Tagwirei owned Landela, and had used his “proximity” to top Government officials to clinch the deal.
However, Landela has denied any dealings with the Sakunda boss, claiming he was neither a shareholder nor a director.
A search at the registrar of companies has revealed that Kudakwashe Tagwirei is neither a shareholder nor a director in the company.
The source of foreign exchange to purchase the buses had also come under scrutiny, with claims that Landela had had easy access to reserves from the Reserve Bank of Zimbabwe.
A source within Landela dismissed the allegation, stating that the company used proceeds from its mining ventures, adding that the decision to sell to Government in local currency was also strategic in that the local currency will be used to fund local components at the mines.
“We have our mines where the (local) currency will be deployed for sourcing local components,” the source said.
With indications that Landela will be bringing in 500 more buses by June 2021, Government will likely benefit, and galvanize its ZUPCO-centred Mass Transport System targeting 2 000 buses.
Landela’s 162 cache consists of 122 Golden Dragon buses, thirty 65-seater Volkswagen units, and ten 69-seater buses of the Marcopolo insignia.
With a crunch economy and spectre of the COVID-19 fight on its hands, it is time that the Government realizes it needs every cent it can save, and arrest policy inconsistencies.
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