HARARE - The National Indigenisation and Economic Empowerment Board (Nieeb) and the Indigenisation ministry awarded multi-million dollar financial consultancy contracts to Brainworks Capital (Brainworks) without going to tender, Daily News has been told.
Brainworks — fronted by former banker George Manyere — is expected to pocket up to $45 million from the Zimplats deal alone.
Any government transaction above $300 000 has to go to tender but Brainworks Capital was awarded the multi-million dollar tender verbally.
In their agreement with Nieeb, it is not clear who verbally awarded Brainworks the tender.
Charles Kuwaza, the State Procurement Board’s executive chairperson,confirmed the development.
“We have not received any proposal of that description and consequently have neither considered or authorised it. The accounting officer at Indigenisation board or Nieeb has not approached us in that regard,” Kuwaza said adding that, “Your lead in today’s issue of the Daily News is the first time we have ever heard about these arrangements. “
The Daily News, discovered that Brainworks was verbally appointed as financial consultant of several indigenisation deals including a $971 million one of Zimbabwe Platinum Mines Limited (Zimplats) and $556 million of Mimosa.
Manyere could neither deny nor confirm that his company would get a windfall from the empowerment deals.
“No no it’s not correct,” Manyere said when questioned why his consultancy firm was awarded the contract without going to tender.
“Talk to Nieeb. (National Indigenisation and Economic Empowerment Board). Get the comment from Nieeb and the ministry,” he said.
Brainworks are reportedly supposed to get two percent of the $971 million Zimplats deal — equating to $19,4 million — for its advisory service.
It also gets an additional 2,5 percent, excluding tax, for raising the vendor financing which adds up to about $24,2 million.
Brainworks is also the financial advisor to six other top earning companies which have or are being indigenised.
- Eric Chiriga, Business Editor