Felex Share Business Reporter
THE sale of prepaid electricity tokens through state-owned enterprises has failed to take-off amid reports that PowerTel and its technical partner E-Solutions are struggling to provide a solution for the roll-out of the project. The roll-out of third party prepaid electricity vending system, that was expected to begin on February 28, is expected to make tokens readily available to consumers.
It emerged that PowerTel, which was “handpicked” by the Ministry of Energy and Power Development to create distribution networks for the sale of the tokens does not have the technical capacity to provide the required solution.
The Zesa subsidiary has only one outlet in Harare. The distribution networks would have seen the tokens being sold through NetOne, Telone, CBZ, ZB, Agribank, Zimpost, POSB and Petrozim. Purchase of pre-paid electricity tokens is only done at ZESA banking halls and at two OK Supermarkets in Harare, and at a ZETDC desk in TM Supermarket in Mutare.
Tokens are only sold during working hours and many consumers are travelling long distances to access vending services.
ZETDC managing director Engineer Julian Chinembiri yesterday confirmed that the project had failed to kick off but referred questions to the ministry.
PowerTel was “handpicked” by the Ministry of Energy and Power Development after it forced the ZETDC to cancel tender number ZETDC/HO 04/ 2013 that sought companies with expertise in provision of prepaid electricity vending to create distribution networks for the sale of the tokens.
The development, in violation of the State Procurement Board rules, did not go down well with 38 other companies that submitted bids to become aggregators. The Procurement Act Chapter 22.14 does not give ZETDC the right to cancel the tender. Some of the companies have written to the SPB and ZETDC challenging the legality of the cancellation of the tender and demanding that the tender be carried out to its logical conclusion.
Zesa management have also expressed concern over the alleged imposition of PowerTel and E-Solutions as aggregators with documents in possession of The Herald Business showing that the deal was done behind the back of the power utility’s senior management.
The management claims it was informed about the deal only after Energy and Power Development Deputy Minister Engineer Munacho Mutezo had already directed the then acting PowerTel managing director, Engineer Patrick Chivaura, to work with E-Solutions in providing third party vending solution.
Both Powertel and E-Solutions also participated in the cancelled tender and had been disqualified after adjudication. Eng Mutezo and Eng Chivaura yesterday referred questions to Minister Dzikamai Mavhaire.
“I cannot speak to you when my minister is around. He is my superior and there is no way I can comment when he is there,” Eng Mutezo said.
Asked on the progress made, Minister Mavhaire fumed: “I do not want to speak with you on that issue. In fact, why do you ask me about that? Ask The Sunday Mail, they know much better than me as they had a whole page about us in their last edition.”
Documents seen by The Herald Business show that the Zesa management is also against the authorisation of the PowerTel/E-Solutions deal as it was not sanctioned by the SPB, which twice cancelled the tender citing technical irregularities. The management also queried why ministry officials would give a directive through junior officials than the normal channels.
“Protocol was not followed as the directive was given to the PowerTel managing director (then Eng Chivaura) instead of coming through the chief executive (Eng Josh Chifamba) or the permanent secretary as is the norm. Failure to follow protocol leaves the Zesa management with no doubt that top ministry officials have vested personal interests in the project.
“The directive was a violation of procurement procedures considering that PowerTel and E-Solutions had also submitted bids for tender ZETDC/HO 04/ 2013. To make matters worse, SPB was not informed about the deal,” the document said.
The management also accused Minister Mavhaire and Eng Mutezo of interfering with the day-to-day running of the power utility.
“Our understanding is that the role of the ministry is to give high level policy guidelines but it seems those in charge of the ministry have become so operational to the extent of specifying bolts and nuts,” read the document.
Reasons for the cancellation of the tender are not clear with Minister Mavhaire on one hand claiming the tender had been cancelled over allegations of deep-seated corruption and the need to protect consumers.
The SPB and ZETDC cited technical irregularities as the reason for the cancellation of the tender. During the tender process, there were queries over companies that already had a relationship with Zesa that had also put in their bids. Such companies include pre-paid meter supplier Finmark Industries, Powertel and Revma.