HARARE - There is a conspiracy of silence by parties involved in the $1 billion Zimplats indigenisation deal following the platinum miner’s refusal to foot $17 million in consultancy fees charged by Brainworks Capital (Brainworks), an advisory firm that carved the deal.

Last month Zimplats rejected Brainworks’ bill arguing that the financial advisory firm was contracted by the National Indigenisation and Economic Empowerment Board (Nieeb), and not by the platinum group metals producer, hence Nieeb must settle the bill.

However, both Nieeb and Branworks have declined to disclose the way forward after the Zimplats snub, sending the Daily News from pillar to post.

Wilson Gwatiringa, Nieeb’s chief executive, said: “I am not commenting on that issue. All along you (Daily News) have been writing nonsense and you want me to comment now.”

“Talk to Brainworks,” Gwatiringa added.

But, Brainworks’ managing partner and chief financial officer Walter Kabwanji also declined to comment.

“We are no longer empowered to speak. It’s (the deal) in the hands of the government,” Kabwanji said, adding “talk to Nieeb.”

There are lingering questions on who is going to foot Brainworks’ tab now.

In a February 22 letter, Zimplats chief executive Alex Mhembere said it was extremely absurd for the Australian-listed company and his South African shareholders to foot the Brainworks bill when it had been contracted by government, in what has been dubbed the country’s greatest empowerment transaction.

This was after Gwatiringa had written to the Emerald Hill-based company seeking payment for advisory fees for the Zimplats indigenisation plan.

In its response, the company said the demand was akin to a technical payment of dividends “to one shareholder without extending the same to other shareholders”.

“In this instance it only leaves Implats, the counterparts in the negotiations, to possibly settle the bill,” Mhembere said.

“We accordingly forwarded the invoice for their attention but regrettably they advised that they are not in a position to honour the payment on the basis that Brainworks Capital was engaged by Nieeb and was acting for and advising Nieeb/the government in the negotiations between Nieeb/the government and Implats in relation to the Zimplats IIP,” he added.

Under Indigenisation minister Savior Kasukuwere, the indigenisation programme had gained traction, with promises to lift millions of people out of poverty.

But there have been disappointments and discontent as the dodgy structure of the deals emerges in the wake of the Nieebgate scandal.

The veil of secrecy around the deals has been lifted, with dealmakers expected to be the biggest beneficiaries of the empowerment transactions.

Under the Zimplats deal for example, indigenous people must pay $971 million within a period of 10 years, failure of which the shares revert back to the owners of Zimplats.

But already, Zimplats has posted a staggering $6 million-plus loss, and 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.

Last Friday, President Robert Mugabe conceded that Kasukuwere, messed up over the much-vaunted Zimplats deal concluded in January.

The $971 million transaction, facilitated through vendor financing at an interest rate of 10 per cent per year, will not benefit ordinary Zimbabweans as initially envisaged.

Mugabe said: “That is the problem, they gave us 51 percent saying that it is a loan that we are giving you, and we are paying for you in advance and then you can pay us back tomorrow.

“I think that is where our minister made a mistake. He did not quite understand what was happening, and yet our theory is that the resource is ours and that resource is our share, that is where the 51 percent comes from.”

Mugabe wanted the shareholding to be in exchange for the platinum, but under the deal, Zimbabweans will have to fork out cash to secure the shareholding.

Amid the deepening scandal, Zimplats was on Friday given 30 days to appeal against a seizure decree issued by Mugabe to repossess 28 000 hectares of Zimplats land containing platinum reserves. - Gift Phiri and Eric Chiriga