ZETDC in US$9m tender scandal

By Nyashadzashe Ndoro | Nehanda Business |

The Zimbabwe Electricity Transmission and Distribution Company (ZETDC) allegedly awarded a US$9 million tender to supply smart meters to a company called Paramount without conducting Factory Assessment Tests (FAT), Nehanda Radio can reveal.

According to the information obtained by Nehanda Radio from trusted sources, Paramount was paid US$9m by ZETDC in a smart meter tender despite failing to meet all specifications required in tender documents.

It is also alleged that Paramount did not do the FAT as required.

FAT is a test that is done at the manufacturer’s site prior to delivery and installation of any product in order to help identify any issues and correct them prior to granting of the tender.

This process is done to ensure that when the systems, in this case the smart meters, arrive, they should be able to be installed and get running quickly and smoothly. But Paramount reportedly did not go through it.

In an interview with Nehanda Radio, ZETDC managing director Lovemore Chinaka admitted the corruption allegation but refused to comment further citing that the issue was before the courts.

“The matter you want to write about is before the courts (sub judice). I do not think it’s the right time for us to comment on it,” he said.

Contacted for a comment, the owner of the company, David Yosa said allegations of them failing to perform FAT were contractual.

“We acknowledge receipt of your enquiry about Smart meter contract with ZETDC. You raised issues of

1. Payment of US$9 million
2. Our failure to meet specifications
3. Our failure to undertake FAT

“The issues relating to our failure to meet specifications can be clarified by PRAZ who can give you information pertaining to the outcome of SPOC review.

“The issues of payments and failure to perform FAT are contractual and ZETDC is the appropriate authority to give you accurate information pertaining to the performance of that contract,” Yosa told Nehanda Radio.