Government Rejects $15 Million Invoice For State House Construction
The government has turned down a $15 million invoice from Tempter Paul Tungwarara’s company, responsible for constructing precast walls at State House, the official residence and offices of the President.
Paulos Construction, under the agreement, was tasked with the project at Number 1 Chancellor Avenue, where construction is currently underway.
This refusal marks the latest instance of the government rejecting bills, citing inflated prices from suppliers, as seen last year.
Sources within the Office of the President and Cabinet (OPC) claim that the invoiced amounts were significantly higher than prevailing market rates. Furthermore, Treasury officials are scrutinizing another invoice from a local construction firm charging $2 million for a gate at State House’s offices and residential area.
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The dispute surrounding Paulos Construction has caused discord within the Finance ministry, with some advocating for payment based on the terms of the winning bid, while others, including top officials, argue that the invoice is exorbitant, equating it to the cost of hundreds of houses in Zimbabwe’s high-density suburbs and deeming it disproportionate to the work completed.
When approached for comment, Tempter Paul Tungwarara of Paulos Construction redirected inquiries to the Ministry of Local Government and Public Works, which endorsed the tender during July Moyo’s tenure as minister. Moyo, however, assumed a new role in the Ministry of Public Service, Labour, and Social Welfare following last year’s elections.
“I have no comment,” Tungwarara said. “You can get in touch with the principal, the Ministry of Local Government.”
Credible sources have revealed that senior figures within the Finance ministry have halted the payment, stipulating that they will only proceed with it if Paulos Construction revises the sum downwards. The exact figure the government is willing to settle on remains undisclosed by The Independent.
“Treasury has rejected the price,” a source in the OPC said. “They feel the US$15 million is too high. Paulos was awarded a tender to construct a perimeter wall and durawall for State House. However, they overcharged the government and it is causing a rift among senior government officials.”
Tempter Paul Tungwarara is a prominent local entrepreneur, notable for his involvement in various ventures, including Prevail International, which is leading the initiative for a $500 million cyber city development in Mt Hampden, located near Harare.
Yesterday, attempts by The Independent to uncover Paulos Construction’s ownership structure proved fruitless. An official at the Registrar of Companies confirmed the firm’s legal registration but stated that the file containing information on its directors couldn’t be located upon the publication’s inquiry.
Local Government Minister Winston Chitando had pledged to address inquiries on Monday but had not responded by the time of printing. Similarly, efforts to reach Moyo for comment were unsuccessful.
Opponents within the Treasury, resistant to disbursing the $15 million, argue that Zimbabwe, grappling with an exacerbated economic crisis fueled by soaring inflation, is beset by numerous challenges. These include a dire shortage of life-saving drugs and specialized medical equipment, alongside a breakdown in public health and overall service delivery systems.
Last year, The Independent reported that Prevail International was one of the companies contracted by the government to drill thousands of boreholes nationwide, demanding payment in Zimbabwean dollars despite government policies restricting fuel trade to the US dollar. This policy enabled importers to adequately supply the market with oil.
In a letter dated July 18, 2023, addressed to PetroTrade and obtained by The Independent, Tungwarara indicated that his company required 400,000 liters of diesel monthly for borehole drilling services, insisting on payment in Zimbabwean dollars.
“Prevail International has been awarded a national status tender for borehole drilling services and spearheaded by his Excellency, President (Emmerson Dambudzo) ED Mnangagwa,” Tungwarara wrote to PetroTrade.
“However, because this is a fuel-intensive project, we respectfully request your assistance in availing the allocation of weekly 100 000 litres of diesel direct Zimbabwe dollar payments bulk fuel.
“We anticipate that your approval of a weekly Zimbabwe dollar allocation towards the purchase of fuel for this borehole will enable smoother operations and implementation for the benefit of the nation at large.
“We appreciate your efforts in our respect and anticipate a favourable response,” he added.