South African businessman Mr Niko Shefer is reportedly siphoning millions of dollars from the Zimbabwe National Roads Administration as facilitation fee for the $206 million loan accessed from the Development Bank of Southern Africa (DBSA) to refurbish the Plumtree-Mutare Highway. It emerged Zinara is depositing a staggering $300 000 in Mr Shefer’s FNB account in South Africa monthly and that contract is running for 10 years.All Mr Shefer did to deserve such a golden handshake was to link Zinara and DBSA.

He charged 2 percent of the loan amount extended to the road fund.

At the lapse of the 10-year contract between Zinara and Mr Shefer, the road fund would have paid him $36 million.

The money that Mr Shefer is receiving is over and above the interest that Zinara is paying to DBSA for the $206 million loan.

Papers in possession of The Herald showed that Mr Shefer used four different companies to claim money from Zinara.

These firms are Sela, Sentinelle, Santanah and Golden Road.

In some of the internal communications among Zinara executives, the issue was raised as far back as 2014 when it was agreed that Mr Shefer was being overpaid.

Former Zinara chief executive officer Mr Frank Chitukutuku sent the then financial director, Mr Thomas Mutizhe, and company secretary Ms Mathelene Mujukoro to South Africa to renegotiate the deal.

According to a report by Mr Mutizhe, Mr Shefer was only supposed to get 2 percent of the $206 million on a reducing balance until the full loan had been disbursed.

The minutes that Mr Mutizhe compiled and submitted to Zinara management after meeting Mr Shefer said: “Sela was being paid two percent of the principal amount regardless of the fact that some amounts had been disbursed which the financial director queried with the CEO (Frank Chitukutuku) and he agreed that there was overpayment.

“Mr Chitukutuku then sent finance director and Mathelene Mujokoro to South Africa to represent him in bringing and documenting this issue.

“We did that and minutes were done to the fact that there has been overpayment and that from 2015 the proper interpretation was supposed to be followed until the loan had been fully disbursed. The current Zinara executive continued to overpay administration fee to date (and) this indicates that there is something going on since the loan has already been disbursed and what is left is repayment.”

Transport and Infrastructure Development Minister Joram Gumbo, yesterday said he was aware of the issue and measures were being taken to correct it.

“I was not minister then. I have heard about that and Cabinet has directed us to look into the whole agreement between Zinara and Univern,” he said.

“At the top there is Zinara and Univern and Infralink is just a kid of those agreements.”

In another case of extravagance, Zinara board members and top managers claims board fees when they attend Infralink meetings.

Infralink is a special purpose vehicle formed by Zinara and Group Five for the Plumtree-Mutare Road project.

In one of the payments to the board members on Infralink business seen by the The Herald, board chairman Mr Albert Mugabe was paid ($1, 900), acting CEO Engineer Moses Juma ($1, 710), Mr Jeffrey Nkomo ($1, 400), director human resources Mr Precious Murove ($1, 710) and Mr Davison Norupiri ($1, 400).

Saida — Prime Minister Abdelmalek Sellal laid, on Wednesday, the foundation stone of a public housing project of 4,900 units in Saida.

This project, carried out in Hai Boukhars, includes 3,000 public rental housing units, including 2,000 units that will be constructed by a Turkish company and the 1,000 remaining ones by a Chinese company.

This project, which is budgeted at more than DZD3.3 billion, will be delivered in September 2018, according to the provided explanations.

Sellal insisted on the need to respect the architectural standards and the quality of constructions.

He also underlined the interest granted to the socio-economic infrastructures that must be carried out on the spot, including green spaces, schools, playgrounds and the different administrations.

Sumbe — The level of intervention of the road rehabilitation will be profound aiming at structurally recovering the physical characteristics of primary roads.

This was said on Tuesday in Longa locality in the coastal Cuanza Sul province by the Construction minister, Waldemar Pires Alexandre, after the signing of contracts for the reconstruction of 328 kilometers of the sections on National Highway 100 on the roads that connect Luanda to Cuanza Sul, under the operational plan of the Chinese credit line.

He noted that to achieve the objectives inspection of ongoing works will be carried out with the utmost rigour, based on the current legislation on the law of public procurement.

The minister stressed that this whole range of interventions will enable to have national roads rehabilitated, as well as users' mobility, safer and acceptable movement and comfort.

According to the minister, work is being done so that these works may have the necessary durability.

Under the agreements signed between the governments of Angola and China, it was subjacent that at least 20 percent of resources allocated to projects awarded to Chinese companies local companies to work in this process must be subcontracted.

Regarding the cities of Sumbe, Porto Amboim and Gabela, the official said part of the integrated infrastructure projects, which began a few years ago, most unfortunately are stopped due to financial constraint.

Nigeria's Dangote Cement has started its shake-up of the Kenyan market with importation of the commodity from its plant in neighbouring Ethiopia as it prepares to establish a local manufacturing plant.

Dangote's targeting of the Kenyan consumer with low-cost cement from Ethiopia is expected to further drive retail prices downward in a market where they have remained static for nearly 10 years.

Importing cement into Kenya is seen as Dangote's short-term market entry plan as it prepares to establish a local plant in 2019.

"In addition, we have begun exporting cement to neighbouring Kenya," the company, which is owned by Africa's richest man, Aliko Dangote, said in its latest trading update.

Dangote said the cement exported to Kenya is priced at about $74 (Sh7,400) per tonne, making it up to 40 per cent cheaper than locally manufactured brands.

The price is expected to incorporate the cost of transporting the cement to Kenya as well as taxes where applicable, while still leaving the company with a profit.

Dangote, which plans to topple LafargeHolcim as the largest producer of cement in Africa, rides on economies of scale to set lower prices that in turn grows its market share. Its plant in Ethiopia has an annual production capacity of 2.5 million tonnes.

However, cement industry sources said the exports mainly covered supplies to road construction projects in northern Kenya.

Dangote also started selling cement in Tanzania early this year after completing its factory in Mtwara about 400 kilometres from Dar es Salaam.

The company cut prices in Tanzania to rapidly gain market share at the expense of rivals, including Kenyan multinationals with a presence in that market.

ARM Cement said in a commentary accompanying its latest results that cement prices in Tanzania fell by a third in the half year ended June as a result of Dangote's entry.

Dangote said in the trading update that it took market share from its competitors in Tanzania despite incurring higher transport costs since its factory is located relatively farther away from Dar es Salaam.

"We estimate that in June we achieved 23 per cent market share across Tanzania and were the leading supplier of cement in the key market of Dar es Salaam," Dangote said.

The Nigerian firm's price in Tanzania stood at about $80 (Sh8,000) per tonne in June, undercutting its competitors by more than 20 per cent.

The company is expected to replicate its lower-pricing strategy in Kenya when it starts to produce cement locally in 2019.

Dangote, which already has a licence to prospect for limestone in Kitui, says it has revised the upcoming factory's annual production capacity to three million tonnes from the previous 1.5 million.

It has incorporated two majority-owned subsidiaries to house its local limestone mining and cement production operations. It has a 90 per cent stake in Dangote Cement Kenya Limited and a similar stake in Dangote Quarries Kenya Limited. The minority interests in the subsidiaries are not disclosed.

The ANC has denied claims that it received R80m from the Passenger Rail Agency of South Africa (Prasa).

The political party announced outcomes from its national working committee meeting, which sat on Monday to discuss a number of issues, including the public spats between Finance Minister Pravin Gordhan and specialised policing unit the Hawks as well as between Treasury and energy provider Eskom.

“The ANC has not received any money from Prasa. Whoever took the R80m’ it never arrived here. The ANC has never received R80m'” said the ANC’s secretary general Gwede Mantashe at a media briefing at its headquarters in Johannesburg.

An exclusive News24 exposé implicated the ANC as a beneficiary in the purchase of the rail agency’s new trains where entities who were not creditors to Prasa received R80m.

“Unless we do that then corruption will be committed in the name of the organisation and our view is that it is this, use of the name of the organisation for individual benefit that drags the organisation through the mud,” he said.

The political party warned those involved in public spats, including Gordhan and the Hawks as well as treasury and Eskom that the controversies were not good for South Africa and its economy, while at the same time reaffirming its belief in Gordhan.

“We do, however, caution them against taking a public posture that seems to isolate them from the rest of government and position them as victims to be protected by society.”

Regarding the electricity supplier, the ANC said it was unfortunate that it has also decided to address its challenges through the media and called for an urgent meeting between the ministries of public enterprises, treasury and energy to decisively deal with this matter in a manner that promotes public confidence.

The much-delayed tabling of South African Airways' (SAA's) annual financial statements has now dragged on for an unacceptably long time and all concerned must urgently get the matter resolved, Parliament's Standing Committee on Finance said on Wednesday.

It expressed concern about reports that SAA could be deregistered in Hong Kong if its financials are not finalised by September 6, and noted with concern the implications of an SAA advert seeking to raise R16bn in the market.

The committee asked Treasury to ensure that SAA's 2014/15 annual report and annual financial statements are tabled in Parliament by the September 15 deadline. It also urged the airline to appoint a new board, and for management to be strengthened considerably as soon as possible.

Treasury – which is SAA's shareholder representative – told Fin24 on Wednesday that the airline's financial position requires extensive and careful consideration, because of the potential implication for the South African as well as for country's sovereign standing.

"In order for a company to finalise its AFS (annual financial statements) on a going concern basis, the company is required to demonstrate that it is solvent and will be able to meet its obligations as they fall due over, at least for the next 12 month period," National Treasury told Fin24.

It pointed out that the additional government guarantees required for SAA to demonstrate that it does indeed meet these requirements would have to be reflected in the notes to the airline's financials.

Finance Minister Pravin Gordhan indicated last week that a "good announcement" regarding SAA could be expected "shortly".

Cash-strapped SAA published a funding request over the weekend, hoping to raise R16bn from banking and non-banking financial institutions to meet its working and capital expenditure requirement, as well as consolidate its current debt portfolio.

Despite this step, SAA still rejects allegations that it should be placed under business rescue or even liquidation. SAA spokesperson Tlali Tlali pointed out that a going concern government guarantee is needed to finalise the annual financial statements and that there are extensive, onongoing engagements with Treasury to try to find a solution and provide certainty.

Business rescue an 'absurd misdiagnosis'

Tlali emphasised earlier this week that SAA has neither defaulted nor been unable to meet its obligations to service its debts – a key determining factor to justify placing a company under business rescue. In his view, those advocating for business rescue are making an absurd misdiagnosis.

In July Gordhan was forced to request Parliament to grant an extension of tabling the much-overdue annual financial statements until September 15. SAA submitted an updated application for a going concern guarantee on December 21 2015. Its financials cannot be finalised on a going concern basis until a decision has been taken on the guarantee application.

ANOTHER massive protest is looming on Wednesday (today) with a view to force President Robert Mugabe to step down.

Coordinators of the protests called #Tajamuka/Sesijikile insists they were going ahead with the massive protests despite police’s heavy-handedness on innocent civilians.

The protests for Wednesday are set to take place in the country’s five mjor cities with the view to make a complete shutdown of business in the capital Harare, Bulawayo, Gweru, Mutare and Masvingo.

The #Tajamuka/Sesijikile’s coordinator, Hardlife Mudzingwa, said enough was enough with abject poverty arguing the suffering was being caused by corrupt ZANU PF leaders, disappearance of R225 billion, abuse of power, police brutality and worsening unemployment in the country.

However, the group pointed out the protests would not go violent sincethey believed in peace and stability, but were quick to say when attacked by police would retaliate.

“We are not a violent campaign and we will not involve ourselves in violence,” Mudzingwa said.

He said president Mugabe was expected to step down from power before December arguing no amount of police brutality would intimidate them nor stop the organised protests from going ahead.

Speaking at the same media briefing, #ThisFlower campaign leader Stern Zvorwadza, who came out from police cells following his arrest last week said the coalition would continue piling relentless pressure on the Zanu PF and Mugabe until they relinquish power.

“This day should be historic and be a day that we say enough is enough. As we participate in this process, we should not be deterred by the brutality of the State. We should stay clear in mind and clear in heart that the fight is on and this fight will end the game,” Zvorwadza said.

Meanwhile, war veterans have warned Mugabe from risking eroding his legacy by refusing to step down even when he is old.

The former freedom fighters said Mugabe’s refusal would also expose his wife Grace Mugabe and children when forced to leave office.

Zimbabwe National Liberation War Veterans’ Association (ZNLWVA) secretary-general Victor Matemadanda said Mugabe’s wife was allowing herself to be used by ‘vultures’ within the ruling Zanu PF to make reckless statements that created many enemies around the country.

“Mugabe is soiling his own legacy by overstaying. There is no need to force things. He is creating trouble for his children by antagonising everyone, we feel for his wife and children,” Matemadanda said.

“Grace is allowing herself to be abused by criminal elements in Zanu PF to create enemies. She is being used by people with an ulterior motive to destroy Zanu PF and she should be warned,” he said.

PRESIDENT Robert Mugabe on Tuesday abandoned the ongoing Sadc summit in Swaziland after his health reportedly deteriorated.

Government sources said Mugabe arrived back in Harare late Tuesday evening and then left the capital just before 11pm. He had travelled to Swaziland on Monday.

The SADC summit was due to end on Wednesday.

“He came back today because of health issues. It has to do with prostate cancer and is due to fly out early on Wednesday to Dubai,” one source said.
Another source added: “He will be treated for urinary tract infection”.

Online flight trackers showed his Zim One Air Zimbabwe plane leaving Harare at 22:45 hours. The plane was last seen above the Indian Ocean, headed towards the Far East.

Mugabe has reportedly been battling prostate cancer and regularly travels to the Far East for treatment although his handlers claim the trips are just for eye surgery.

Pressure has been mounting on the 92-year-old Zimbabwean leader within and outside his ruling Zanu PF party.

Opposition parties and rights activists engaging in protests almost every week demanding that he steps down due to old age.

Veterans of the liberation struggle, a key Zanu PF affiliate, have also rejected Mugabe and declared they would not support him at the next elections which are due in 2018.

The Communication Workers Union (CWU) has called on MTN chief human resources officer, Nhlanhla Qwabe, to step down in its latest war of words with the network.

The union is set to meet MTN in court on Tuesday after applying for an interdict against the company regarding its outsourcing plan.

Last week, the CWU applied for a court interdict against the network provider following the company's decision to outsource a portion of its call centre facility to a third-party vendor. The union claims that it had not been properly consulted over the move.

CWU president Clyde Mervin said that MTN had been victimising staff members and shop stewards amid threats of strike action.

The union is also calling for a salary increase and the conversion of temporary workers into permanent staff.

"We cannot allow our members to be treated this way. We are going for them. There is a war to come," Mervin told Fin24.

"People say they know us for all calling for people to step down, but that is exactly what we are doing. We want Qwabe to step down," he added.

MTN earlier said it will adopt a hybrid outsource model which would result in retaining some of its call centre facilities, while others would be outsourced to an experienced third party vendor.

This was in a bid to "optimise operations and enhance customer experience."

Meanwhile, MTN and CWU are set to meet on Friday again in a "long over-due" meeting, said Mervin.

MTN confirmed that the meeting with the union was indeed scheduled to take place on Friday.

"We are looking forward to a constructive meeting, where all parties will conduct themselves in a respectful and professional manner," Qwabe told Fin24.