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Reward Kangai

Zvamaida Murwira Senior Reporter
NetOne and TelOne should be weaned from procuring goods and services through the State Procurement Board to level the ground with their competitors who are not subjected to such bureaucratic procedures, legislators heard yesterday.NetOne chief executive Mr Reward Kangai said NetOne’s competitors Econet, Telecel and Liquid made quick decisions in procuring goods and services because they are not subjected to the tendering process.

He said the requirement for them to submit strategic plans to the SPB had the effect of exposing them to their competitors who could easily secure that information and scuttle implementation.

Mr Kangai said this while giving oral evidence before a Parliamentary Portfolio committee on Information Communication Technology, Postal and Courier Services chaired by Kuwadzana MP Mr Nelson Chamisa (MDC-T).

Mr Chamisa and Zaka Central MP Cde Paradzai Chakona (Zanu-PF) had raised concerns on why NetOne was lagging behind competitors yet the mobile service provider was the first to set up a cellular service.

But Mr Kangai questioned the rationale for going through the SPB saying the purpose of unbundling Posts and Telecommunication Corporation more than 15 years ago was to liberalise the sector.

He said NetOne and TelOne no longer existed under an Act of Parliament but through the Companies Act obviating the need to go through the SPB.

“Why do we have to go through these bureaucratic procedures where we are now required to publish key strategic plans to the SPB when our competitors have free rein and have access to that information? They know that NetOne is trying to do this and they can take these documents from SPB before we even implement it,” said Mr  Kangai.

“By the way, they will try to scuttle you before you implement.”
He said they were on the verge of clinching a multimillion-dollar loan to expand their network with a Chinese firm but someone was now trying to scuttle that loan.

“Right now there are manoeuvres to kill that loan. Somebody has taken NetOne and SPB to the Administrative Court in an effort to kill this project yet this project will transform the communication landscape in Zimbabwe,” he said.

Government, he said, was still in the processing of looking for a partner who could inject fresh capital. During the meeting, committee members expressed concern to the secretary of the ministry, Engineer Sam Kundishora, on why there were several and different Government departments under the same ministry providing internet services requiring funding from the fiscus.

Mr Chamisa asked if it was not possible to merge them and strengthen the internet service provider. Some of the departments providing internet service are TelOne, Zimbabwe Academic and Research and NetOne.

Eng Kundishora said discussions were underway to address the issue. TelOne chief executive Mrs Chipo Mutasa said the firm was saddled with a US$345 million legacy debt inherited during the PTC era, a development she said was affecting their balance  sheet.

She said they were owed about US$200 million by parastatals and Government departments.