HARARE - It never rains but pours for Brainworks Capital Management Company (Brainworks) after Unki Mines Pvt Ltd (Unki) rejected dubious instructions from the National Indigenisation and Economic Empowerment Board (Nieeb) to pay $3,3 million for untendered advisory services.

The Nieebgate scandal is taking twist and turns daily.

Letters in possession of the Daily News show that the Anglo American Platinum (Amplats)-owned Unki flatly refused to pay over $3 million to Brainworks for advisory services rendered to Nieeb and the government of Zimbabwe in the execution of the indigenisation implementation plan for the platinum miner signed on November 1, 2012.

The Anglo-American subsidiary handed over a 51 percent stake in its Unki project in Zimbabwe to locals in November, in a drive that seeks to transfer majority ownership of all foreign-owned firms to locals.
Unki becomes the latest indigenised firm to refuse paying the advisory firm in the wake of Zimplats’s refusal to pay Brainworks.

Like Zimplats, Unki also stated that it had no contractual relationship with Brainworks and it was bizarre for the company and its shareholders to foot the bill for George Manyere’s firm when it had been contracted by government.

In a surprise turn of events, Brainworks charged 1 percent of the $284 million Unki transaction instead of the 2 percent as specified in the letter of appointment.

The invoice does not state whether the tax invoice is final or an interim charge.

Upon receiving the invoice, Nieeb duly followed instructions from its "principal" Indigenisation minister Saviour Kasukuwere to pass on the invoice to Unki on 17 January, 2013.

But in a strongly-worded January 22, 2013 letter, Unki’s chief financial officer Collin Chibafa, said the imposed costs could not pass the world's top platinum miner’s rigorous scrutiny , governance and internal control procedures for payment particularly since they had no contractual arrangements with Brainworks Capital.

“I refer to our recent email exchanges regarding the invoice for $3,275,200 raised by Nieeb's financial advisors, Brainworks Capital,” Chibafa’s letter says.

“This matter has been discussed internally and I regret to advise that these costs cannot be for Unki's account. Brainworks Capital was not contracted by Unki as its advisors. Neither was the scope of works to be carried out or fees to be charged agreed upfront.”  

This was after acting Nieeb chief executive Wellington Zengeza had written to the Emerald Hill-based company seeking payment for advisory fees for the Unki indigenisation plan.

“Further my letter of 20th December 2012 and our subsequent telephone conversations regarding the above subject, I now write to formally submit to your company the final tax invoice for US$3,275,200 raised by our financial advisors, Brainworks Capital Management Company (Private) Limited, representing advisory fees for the provision of advisory services to the government of Zimbabwe and the Nieeb,” Zengeza’s letter says.

“As explained in our previous telephone discussion, the submission of the invoice to your company for payment is in line with our principals' directive that advisory charges incurred by Nieeb and the government in the execution of indigenisation transactions will be paid by the companies that are indigenizing in pursuance of the lndigenisation and Economic Empowerment legislation.

“Your co-operation will be greatly appreciated and we look forward to your early settlement of the attached invoice”.

Zimra also demanded access to information on the deal but Unki categorically denied ever entering into a deal with Brainworks.

In its response dated 21 February 2013, Unki, whose platinum mine is in Shurugwi, about 350 kilometres south of the capital, said the company has no contractual relationship with Brainworks.

“The company received the attached letter dated 17 January from Nieeb requesting that it pays Brainworks $3,275,200, being the invoice for Nieeb's advisory fees,” Chibafa’s February 21 letter says.

“The company did not agree with Nieeb's basis for requesting it to pay this fee and raised its objections in a letter dated 22 January.

“Therefore to date, neither the company nor any company within the Anglo American plc group has made any payment to Brainworks in relation the indigenisation transaction being negotiated with Nieeb.”

In a stunning twist of events, President Robert Mugabe last Friday admitted that Kasukuwere had messed up the indigenisation deals.

Unki’s refusal to pay adds more woes for Kasukuwere, who also faces a parliamentary probe requested by Prime Minister Morgan Tsvangirai into alleged corruption in the handling of deals for six other top-earning companies.

Meanwhile, the Anti-Corruption Commission is officially probing the Zimplats deal, amid reports there are attempts to stonewall the investigations. - Gift Phiri, Political Editor