HARARE – A Harare magistrate has cautioned businessman Wicknell Chivayo, who is facing fraud charges to abide by bail conditions after he defaulted reporting to police during Heroes’ holidays.
Chivayo and his company Intratek Zimbabwe (Pvt) Ltd are being charged with fraud, money laundering and contravening two sections of Exchange Control Act.
An enquiry was made after Chivayo failed to report at Morris Depot on August 13 citing that he had been turned away by a female cop because it was a holiday.
However, it was established that on the day in questions 13 other accused persons had reported at the same police station.
“The accused person has been warned to abide by reporting conditions which were imposed on him by the court.
“An inspection-in-loco proved that other accused persons actually reported at the same police station that day hence it is not possible that he was turned away,” Zivanai Macharaga of the President’s Special Anti-Corruption team said. Chivayo is expected back in court today for an application to have his passport temporarily released.
His trial will be heard between September 18 and 20 together with former Energy minister Samuel Undenge.
The complainant is Zimbabwe Power Company represented by board member Thandiwe Mlobane.
Prosecutor Michael Reza alleged that sometime in 2012, ZPC resolved to increase power on the national grid.
A feasibility study was carried out and a tender process done in August 2013 for installation of a 100 Megawatt solar power plant in Gwanda and the tender was awarded to a Chinese company China Jianxi at a cost of $183 million.
The court heard Chivayo participated in the tender with a bid of $248 million being the third lowest. However, it was alleged, Chivayo’s accomplice Undenge interfered with the tender process and directed ZPC accounting officer Noah Gwariro to award the tender to Chivayo and his company.
He allegedly misrepresented that he had capacity to implement the project.
Chivayo reportedly won the tender at $172 848 597.
The court heard on October 23, 2015 ZPC acted on the misrepresentation and signed a contract with Chivayo for implementation of the project.
ZPC released $5 607 814, 24 into Intratrek bank account for the project to take off.
Chivayo allegedly converted or transferred the money into various individual and company accounts.
ZPC suffered prejudice of $5 607 814.24 and nothing was recovered.