Vice President Constantino Chiwenga reportedly cancelled a US$2 billion tender awarded to South African firm Khato Holdings for the dualisation of the Beitbridge-Victoria Falls highway while President Emmerson Mnangagwa was on leave as a rift between the two reportedly widens.
This was revealed by the Zimbabwe Independent newspaper in a story published on Friday.
Sources close to the publication said the deal that Mnangagwa signed with the South African construction giant when he was on a crusade of inviting foreign investors was terminated when the Zanu PF leader was on an annual vacation.
Mnangagwa resumed duty on February 5 after attending an Africa Union Summit in Addis Ababa Ethiopia.
The Zimbabwe Independent said the multi-billion-dollar project was expected to boost regional trade as it connects four countries — Zimbabwe, Zambia, Democratic Republic of Congo and Botswana.
It further reported that the project was also expected to culminate in the construction of additional infrastructure.
It is further reported that, prior to the cancellation of the tender by Chiwenga, Katho Holdings through its subsidiaries, Khato Civils and South Zambezi had won tender rights for the development of the road on a Build, Operate and Transfer (BOT) basis.
A memorandum of agreement between Zimbabwe and the joint venture was subsequently signed in April 2019 after which a letter of appointment followed.
Chiwenga allegedly wielded the axe on the South African firm citing lack of progress on the project. It is said that the move left the whole cabinet divided.
Sources said Khato Holdings had already completed review and bankable feasibility studies before Chiwenga pulled the rug from under its feet.
The giant company is also believed to be willing to take the legal route to fight to retain the rights.
The entity is linked to influential Malawian billionaire Simbi Phiri.
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