ZMDC paid consultant $45,000 before contract was signed, court hears

HARARE – The Zimbabwe Mining Development Corporation (ZMDC) paid a consultant US$45,000 before a contract had been signed, the Harare Magistrates Court heard on Monday.

ZMDC’s acting general manager Luke Akino and former board chairman David Murangari are accused of corruptly awarding a $168,000 contract for consultancy services to Mashungupa and Muhita Engineering Projects without going to tender.

The consultants were hired to advise on the resuscitation of gold mine, Jena Mines, one of the mines under ZMDC.

Amos Mashungupa a director in the consulting company, took the witness stand and maintained that Murangari and Akino, who deny criminal abuse of office charges, were men of integrity.

He testified that he previously worked with Akino and Murangari at Bindura Nickel Corporation where the two were concentrator superintendent and managing director respectively.

He said when he started work at Jena Mines, he did not have a contract with ZMDC but a verbal assurance from the board.

“When we commenced work in November 2017, we didn’t have a valid and signed contract. However, discussions with the board indicated that we met the requirements and we were going to be given the contract,” he said.

“We were paid for the services before the contract was signed but we were assured we were going to get the contract.”

Documents tendered in court show that the contract was signed on March 22 last year. By then, ZMDC had deposited US$25,000 and US$20,000 to Mashungupa and Muhita Engineering Projects on November 14, 2017, and February 15, 2018, respectively.

Asked how he won the tender, Mashungupa said he was contacted by Akino over the phone in October 2017 before holding a meeting at ZMDC offices.

He said he was not aware of any underhanded dealings in the manner in which he obtained the contract.

Mashungupa also insisted that he had the expertise in resolving the challenges that were bedevilling the mine.

“I didn’t see anything suggesting they showed favour to me. They required someone with experience in the mining industry to quickly resolve the problems,” he said.

The trial continues.