Zec tender invoices inflated by 30 000%

NATHAN GUMA

SCRUTINY of data has unearthed massive profiteering of up to 30 000% by dodgy characters linked to businessman Wicknel Chivayo in the corrupt US$100 million electoral supplies deal between the Zimbabwe Electoral Commission (Zec) and South African company Ren-Form CC.

An analysis of documents, invoices and payment vouchers also shows that Zec started the formal election tendering process well after awarding Ren-Form the deal.

In fact, by the time a delegation led by deputy chair Rodney Kiwa travelled to South Africa to conduct due diligence on seven potential suppliers in April 2023, Ren-Form had already raised several invoices and received payments from Treasury.

This means formal processes such as engaging the Special Oversight Committee (Spoc) and the due diligence visit to six other South African companies, among other things, were just a formality.

The scandal, broken by The NewsHawks, has sucked in the Office of the President and Cabinet (OPC) particularly chief secretary Martin Rushwaya, Central Intelligence Organisation director-general Isaac Moyo and Zec chairperson Priscilla Chigumba, among others.

Chivayo is also close to President Emmerson Mnangagwa.

The various electoral supplies were provided by Ren-Form CC, with Chivayo and his associates brokering the deal through Better Brands Security (Pvt) Ltd, a local company.

Betterbrands is owned by Zimbabwean gold-baron Scott Sakupwanya, who is Mnangagwa’s ally and a Zanu PF legislator.

Data analysed by The NewsHawks as part of an investigation funded by the Voluntary Media Council of Zimbabwe (VMCZ) on illicit financial flows has shown that most of the goods were heavily inflated, with large differences between marked prices in receipts by Ren-Form to Zec.

The investigation also shows the depth of the corruption. Proceeds from the deal, meant to be shared by players on the Zimbabwean side, were deposited in a South African bank account, to avoid scrutiny. For instance, an invoice generated on 3 March 2024, invoice number 1365, shows that a server (HP Proliant dl380 gen10) which was provided to Zec was inflated by 30 022%.

Zec was charged US$1 264 865 although the server has a retail price of R74 659, which translates to US$4 213.

An invoice for server software (Microsoft Server OS) was pegged at US$126 030 in the deal, despite it having a retail price of R25 714, which translates to US$1 451 using the R17.71 official exchange rate. This translates to an increase of 8 685%.

While other items like interactive whiteboard software (SKU HV-1683FULL) were pegged at US$14 716, the same has a marked retail price of R 32 284.12 on whiteboardshop.co.za, and R50 000 on eduboard.co.za, which translates to US$2 821.

A Samsung Galaxy Tab A7 10.4 T505 32GB LTE WiFi tablet was pegged at US$422. The same costs R3 899 on techexchange.co.za, which translates to US$220.

Other items charged were inflated by various amounts.

How the corrupt deal was crafted;

Server (HP Proliant dl380 gen10 provided to Zec was inflated by 30 022%

Chivayo and his business associates Mike Chimombe and Moses Mpofu, through Better Brands Security (Pvt) Ltd owned by Sakupwanya brokered an agreement with Ren-Form where the South African company would supply, install, train and support a suitable solution that will meet the needs of Zec ahead the 2023 general elections.

They proposed to provide new world-class BVR kits as well as the required software to ensure that the commission can register and update the voter management system ahead of the polls.

A memorandum of agreement (MoA) signed by the parties on 13 February 2023 indicates the parties agreed to work together “for the purpose of preparing and submitting one or more bids (Proposals) to ZEC for the supply of Biometric Voter Registration Kits and any other election material ‘of ZEC’ for the forthcoming 2023 elections”.

The MoA shows that Ren-Form was meant to charge market fees, with Better Brands Security then inflating the prices through charging extra fees and commissions.

The final invoice presented to Zec contained the market price and the extra fees, to cater for the share of the Zimbabwean businessmen, and the powerful officials behind them.

This is where Chivayo and his associates made huge pickings despite not bringing anything to the table.

They then pocketed the proceeds from the corrupt arrangement.

Ren-Form chief executive officer Thomas Michael Du Sart signed on behalf of his company which waslisted as the contractor while Everson Chatambudza signed on behalf of Better Brands, referred to as the partner in the MoA.

They agreed that Better Brands would play a hidden role, as it would engage the electoral body behind-the-scenes in the corrupt deal.

Ren-Form’s role was to formally engage Zec and to factor in inflated prices after being given direction by Better Brands.

“The Contractor will act as the prime contractor and will prepare and submit the Proposal. The contractor will be the point of the contact to the Customer and will own the overall customer relationship and satisfaction,” reads the MoA.

“The Contractor shall offer the best available pricing to the Partner, which is market related, and the Partner shall be entitled to add a mark-up and/or service fees and or commission as applicable to the pricing provided and which the Contractor shall present to Zec. An Addendum to this Agreement shall be created by the Contractor for each bid to Zec, detailing the pricing and all commissions, fees and mark-ups payable by the contractor to the Partner and shall be signed by the parties.

“The proposal will be prepared by the Contractor who will designate a representative and will act as the leader for the Proposal.

“The Partner agrees to provide the necessary liaison effort with the Zec to allow the Contractor to draft and write the Proposal that describes the requirements and provides the necessary solution for Zec and thus to submit the most responsible Proposal practicable.”

The parties agreed that Ren-Form would receive payment from Zec, before depositing the extra money meant for Chivayo and his associates into Better Brands Security (Pty)’s FNB bank account number 63039713524, Sandton branch in South Africa, documents show.

A proposal for the supply of biometric kits from Ren-Form to Zec addressed to Chigumba proposed the following payment terms: 50% with order, 35% on delivery of kits to Harare and 15% on project approval and sign-off.

Key Players in the corrupt deal and their roles

Other than Chivayo, Mpofu and Chimombe, key players in the multimillion deal were Chigumba, Zec chief electoral officer Utloile Silaigwana, chief procurement officer Robson Changachirere, Sakupwanya, CIO director-general Isaac Moyo, chief secretary to cabinet Martin Rushwaya, Ren-Form international sales executive Angus Carlaw and the company chief executive Thomas Michel du Sart.

Chigumba, working with people in the Off ice of the President and Cabinet, and CIO partly initiated the deal.

The Zec secretariat is headed by Silaigwana, the administrative and technical leader, as well as the accounting officer, who directly reports to the commission through Chigumba.

Zec has other departments that report directly to Silaigwana including the procurement management unit.

The procurement department is headed by Changachirere, who was involved in the deal.

However, Chigumba was the overall boss, while in the Office of the President and Cabinet Rushwaya was key.

At CIO, Moyo was central. CIO vets people and companies involved ahead of such deals being granted.

Chivayo, Mpofu, Chimombe and Sakupwanya were brokers and agents of the deal.

They signed a contract with Ren-Form, a South African integrated digital communication and printing company, the supplier. RenForm, in-turn, signed a contact with Zec.

When the official Zec delegation travelled to South Africa for engagements from 16 April to final approval in May, the tender was already running and money was flowing in.

Why Chivayo brought in Mpofu, Chimombe and Sakupwanya

Using his connections to Mnangagwa, Chigumba, Moyo and Rushwaya, Chivayo secured the opportunity to source electoral material.

Because he does not have the technical knowledge or know-how on elections, electoral matters and material supplies, he invited Mpofu, who has an information technology background and has dealt with Zec many times before, to be part of the deal.

Checks by The NewsHawks revealed Mpofu was involved in the 2018 elections and several others before going back to 2008.

His experience was valuable.

After securing his position, Mpofu brought in his friend, Chimombe, as they always hunt for tenders and work together.

In terms of the agreement between RenForm and Chivayo and others, each party was going to bear its own costs and expenses, including travel, preparation and submission of proposals, and all commitments and representations, hence the importance of gold baron Sakupwanya.

Sakupwanya provided funds for Chigumba, Chivayo, Mpofu and Chimombe to travel to Johannesburg to meet Ren-Form officials, before the deal was formally sealed on May 12.

Because Sakupwanya provided the initial funding, money was going to flow from Zimbabwe’s government or Treasury’s nostro account at CBZ Bank to Ren-Form through Standard Bank account number 002742659, Southdale branch, documents show.

From there, Ren-Form would transfer within 48 hours 66% of the money to Better Brands Security (Pty)’s FNB account number 63039713524, Sandton branch.

Chigumba’s role

Chigumba’s role was revealed in a letter of complaint dated 24 April 2024 to Ren-Form official Angus Carlaw, which was co-signed by Chimombe and Mpofu.

Chimombe and Mpofu complained bitterly that Ren-Form officials connived with Chivayo to disregard a contract between the two parties by entering into an unlawful deal with the controversial businessman and convicted criminal, whom they paid inflated fees.

The two were bitter that Chivayo was not giving them their share in the corrupt deal.

The parties entered into an agreement after a meeting at Ren-Form’s Johannesburg premises on 2 February 2023.

“We are writing in regard to an agreement entered into between better Brands Security (Pvt) Ltd and yourselves on the 13th of February 2023. Or agreement was to partner with you to participate in tenders in Zimbabwe for election materials. We have attached the contract for your reference,” they wrote.

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“This was done after a meeting between Moses Mpofu, Wicknell Chivhayo and the Zec chairperson, Honourable Chigumba held at your premises in Johannesburg on the 2nd of February2023; we will attach the photos taken on the particular meeting day.”

Chigumba’s role is suspicious, given that the meeting took place before Ren-Form made its proposal.

The visit also occurred before Zec's belated formal processes rendering the exercise academic. According to state media reports and a statement produced by Zec, after The NewsHawks broke the story, the commission in June said it followed the procedure prescribed by the law in awarding Ren-Form the tender.

Zec said it engaged all relevant stakeholders through the Special Oversight Committee (Spoc) which includes the Procurement Regulatory Authority of Zimbabwe, in sourcing electoral materials for last year’s general elections from Ren-Form.

Zec said it wrote to the ministry of Foreign Affairs and International Trade on 16 February 2023 seeking assistance in identifying potential suppliers through embassies, after which the Zimbabwean embassy in South Africa identified seven potential suppliers —

Asset Protection Africa (Johannesburg),

Uni Print (Durban);

UV Equip (Midrand);

Lithotech (Johannesburg);

Forms Media Independent (Johannesburg);

Novus Print (Capetoen)

and Ren-Form.

After the vetting process, three companies were shortlisted.

A team of delegates led by Zec deputy chairman Rodney Kiwa, Printflow, Fidelity Printers and a forensic scientist from the Zimbabwe Republic Police travelled to South Africa between 16 April and 21 April for due diligence.

They also roped in embassy officials.

The contract for procurement of the ballot papers and ink was submitted to Praz (Spoc) on May 8 and approved four days later by Spoc.

However, by the time the official Zec delegation travelled to South Africa for engagements from 16 April through to final approval in May, the tender was already running and money was flowing in.

For instance, Zec received a quotation of US$4 919 592,00 dated 20 February 2023, invoice number: Q20022023_211 and registration number: 1992/001051/23 for the supply of BioRugged Mark1N Biometric Voter Registration Kits.

The quaotation was addressed to Chigumba.

This was before the formalisation of the tender, which was approved on 12 May.

Another invoice of US$8 964 603,80 dated 3 March 2023, registration number 1992/001051/23, for the procurement of BVR Kits and software was sent Zec contact persons Silaigwana (chief electoral officer) and Changachirere (procurement manager).

A letter dated 4 April shows that the ministry of Finance wrote to the head of division for the Reserve Bank of Zimbabwe (RBZ) instructing them to debit Treasury Nostro Account 2000004448 with US$8 964 603 and credit Ren-Form CC with the ZAR equivalent into the company’s Standard Bank account no. 002742659, Southdale Branch.

Treasury, through CBZ, transferred R79 297 591.66 to FNB with the beneficiary customer being Ren-Form CC on 19 April, three weeks before the deal was approved.

On 5 May, a week before approval of the tender, the Finance ministry made another request to the RBZ for payment of US$2 145 000 to Ren-Form in their Standard Bank account no. 090289366.

Documents confirm Chivayo’s leaked audio notes that money was flowing in before the Easter holidays.

The audio was leaked after The NewsHawks’ expose, where he talks about receiving a US$1 million payment.

This was the lowest payment in a raft of transfers —before Easter which was split and disturbed to key beneficiaries.

The US$1 million was split and distributed as follows: Sakupwanya (US$350 000); Chivayo (US$150 000); Mpofu (US$150 000), Chimombe (US$150 000); "Moms vaya" (Chigumba, US$100 000) and DG (CIO boss Moyo, US$100 000).

This money was meant to ensure the beneficiaries had good Easter holidays while bigger payments were coming.

President’s Office’s Involvement

BVR Kits and software was sent Zec contact persons Silaigwana (chief electoral officer) and Changachirere (procurement manager).

A letter dated 4 April shows that the ministry of Finance wrote to the head of division for the Reserve Bank of Zimbabwe (RBZ) instructing them to debit Treasury Nostro Account 2000004448 with US$8 964 603 and credit Ren-Form CC with the ZAR equivalent into the company’s Standard Bank account

The deal had the blessing of the Office of the President and Cabinet. In some cases, invoices from REN-Form were sent directly to the OPC instead of Zec.

For example, an invoice of US$19 957 301 (Invoice Number 101.1 was sent to Cabinet Secretary Martin Rushwaya on 28 October 2023, representing 50% of the contract value for a new voter management solution for Zec.

This was an advance payment ahead of any supplies as per the agreement.

This was followed by invoice number 101.2 on 28 November 2023 for US$4 989 325.50 representing 12.5% of the invoice value for the voter management system.

Another invoice dated 4 March 2024; Invoice Number 101.4 for the amount of US$4 989 325.50 (25% of the contract value) was also sent to Rushwaya, indicating that the OPC played a pivotal role in US$40 million contract “new voter management solution for ZEC” contract.