Lack of cooperation led to Essar deal collapse: VP Mnangagwa VP Mnangagwa
VP Mnangagwa

VP Mnangagwa

Zvamaida Murwira Senior Reporter
Lack of coordination by ministries during the Inclusive Government led to Essar to reinvest elsewhere funds it had reserved for injection into Zisco, resulting in the deal taking long to take off, Vice President Emmerson Mnangagwa told Parliament yesterday.

He said officials from Essar were being moved from Ministry of Industry and Commerce led by Professor Welshman Ncube to Mines and Mining Development Minister then led by Dr Obert MPofu because ministers of the two portfolios were from different political parties.

VP Mnangagwa was responding to a question from Kwekwe Central MP Cde Masango Matambanadzo (Zanu-PF) and Mabvuku-Tafara MP Mr James Maridadi (MDC-T), who wanted to know what had stalled the implementation of the Zisco deal signed between the Government and an Indian firm, Essar.

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“There was no serious collaboration. However, Essar, which had raised funding could not keep the money for too long. We have reached a situation where Essar is willing to take other companies in order to marshal resources because Essar moved the money elsewhere where a plant is now functioning,” said VP Mnangagwa.

Responding to another question, Tourism and Hospitality Industry Minister Walter Mzembi said Government was mulling registering homes that sold beer popularly known as shebeens.

Muzarabani South MP Cde Christopher Chitindi (Zanu-PF) had asked Minister Mzembi on the ministry’s policy on shebeens.

Minister Mzembi said they crafted a policy to remove a colonial mindset on shebeens so that they could be re-branded, registered and sell their beer without being criminalised.

Zvimba West MP Cde Ziyambi Ziyambi (Zanu-PF) subsequently asked if shebeens were legal, while Proportionate Representative MP Ms Priscilla Misihairabwi-Mushonga asked what guarantee there was that only beer would be served without turning them into brothels.

“We are re-branding shebeens as home hospitality centres and there will be an extension of products that we shall register. They will be licensed to host people in a typical home environment. I do not see what happens in bedrooms, I just register a product and I don’t mind whom you sleep with,” said Minister Mzembi.

He said the Zimbabwe Tourism Authority will soon register them ahead of the forthcoming International Conference on AIDS and STIs next month.

Responding to another question, Energy and Power Development Minister Samuel Undenge said increased population in the region had strained power generation and distribution.

He said Government would continue engaging other players like Cahora Bassa so that they could get more power supply.

Binga South MP Gabbuza Joel Gabbuza (MDC-T) had asked why power shortages were more severe now than in 1983 when Kariba Dam water levels were lower than what they are now.

Minister Undenge said while it was true that Kariba Dam level became low in 1983, there were other factors that made the current situation difficult to provide reliable power.

“Right now, there is a shortage of power in the entire region because of increased population,” he said.

Responding to another question Minister Undenge said he would institute an investigation on why a service station was constructed near residential areas adjacent to a police station in Avondale.

He had been asked whether a risk assessment had been carried out in issuing a licence of a service station in Avondale as police suspect that residence and other adjoining infrastructure might be affected if it catches fire.

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