Indigenisation scam rages on

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HARARE – Amid spirited denials by spin doctors and the National Indigenisation and Economic Empowerment Board (Nieeb) that government was not cheated in the $1 billion Zimbabwe Platinum Mines Limited (Zimplats’) indigenisation deal, the Daily News today publishes the first of a trove of evidence in its possession.

Nieeb chairperson retired lieutenant general Mike Nyambuya insists that Brainworks Capital was awarded the contract transparently.

However, the advisory and capital raising mandate letter below clearly states that Brainworks Capital was ever verbally appointed to advise Nieeb on seven top earning companies.

Fronted by former banker George Manyere, Brainworks were the financial advisors hired to handle the greatest empowerment deal between Zimplats and Nieeb and several other empowerment deals.

Manyere’s Brainworks is entitled to pocket a total 4,5 percent as commission in the Zimplats deal, which translates to approximately $45million. The percentage charges are all contained in the dossier below.

While Nyambuya claims the transaction was not done outside the law, the $971 million deal is way above $300 000 — which is the value of all government deals that must be put to tender.

 State Procurement Board chairperson Charles Kuwaza has also confirmed to the Daily News that Brainworks was awarded the lucrative empowerment deals without going to tender, with Kuwaza saying he got to know about the private equity investment firm through the Nieebgate scandal.

“To say the transaction was done outside the laws is mischievous,” Nyambuya claimed in the State media yesterday.

From the Zimplats term sheet, which like the letter below is in our possession; indigenous people must pay $971 million within a period of 10 years, failure of which the shares revert back to the owners of Zimplats.

Indigenous people are being given 10 years to pay the $971 million but if they fail, they will be given 10 days within which to pay cash or they will forfeit the shares.

Zimplats has in the last 10 years only paid a total dividend of $50 million making it almost certain from the onset that the indigenous people will not be able to pay the $1 billion repayment to secure their 51 percent.

In its present form, the Zimplats deal does not benefit the indigenous people or government but individuals, who are set to pocket a huge windfall for structuring the empowerment deals. – Gift Phiri, Political Editor

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