ZPC boss suspended

The Herald Business understands that Mr Gwariro was suspended together with ZPC technical director Mr Thanda Chasi.

While details of what exactly transpired are still sketchy, sources alleged that Mr Gwariro fell out with the board and Energy and Power Development Minister Elton Mangoma after he expressed reservations over the awarding of the tender to a bidder whose bid was US$300 million more expensive.

Although the winning bid is determined by the State Procurement Board, the ZPC MD is supposed to make recommendations in which case Mr Gwariro allegedly expressed reservations over the winning bid.

ZPC is the State-owned electricity generating company. The State Procurement Board recently awarded the tender for the expansion of Hwange Thermal Station to China Machinery Engineering Company, which had submitted a US$1,3 billion tender compared to the one for US$1 billion submitted by another Chinese firm, Sino Hydro.

Sources said that Minister Mangoma pressured Zesa Holdings chief executive engineer Josh Chifamba to write a letter of suspension, but the letter allegedly did not specify the charges.

“We understand Mr Gwariro was suspended because he was against the awarding of the Hwange Power Station tender to a more expensive bidder,” said the source. “Remember, the bid was awarded to a CMEC whose bid was US$300 million more than what Sino Hydro had tendered.”

Sino Hydro, another Chinese firm, was given the contract for the expansion of Kariba South Power Station.
Contacted for comment yesterday, Mr Gwariro, who is allegedly on indefinite suspension, confirmed he was not at work but dismissed the alleged suspension.

Instead, he claimed that he was on official leave.
“I am not aware of the suspension but am actually on leave,” said Mr Gwariro. ZPC chairman Mr Victor Gapare also insisted that Mr Gwariro is on “official leave”.

Minister Mangoma said: “Normally I don’t talk to the Herald. No comment. And you can actually write that I refused to talk to The Herald.”
Expansion of Hwange Thermal Power Station involves construction of two more 300-megawatt units. The project is expected to take two years from the commencement.

Sources in the power sector said the fact that the suspensions have been kept under wraps shows the whole issue is shrouded in controversy and has a hidden agenda.

There is also concern that suspensions of the ZPC directors could jeopardise the restructuring of the power sector as Government is working on unbundling power utility Zesa Holdings to level the playing field and also allow elusive investment into the sector.

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