South African firm allegedly swindles close to $50 million from Govt

A South African firm, Group Five, which was contracted to upgrade the 800KM Plumtree-Mutare highway in a $206 million deal, allegedly swindled Government of close to $50 million after it coerced Zimbabwe National Roads Administration (Zinara) to pay value added tax (VAT) amounting to $28 million.

As per contract, Group Five was supposed to pay the VAT. However, Zinara board chairman Mr Albert Mugabe said there was nothing sinister about the deal. Sources told The Herald that Group Five overstated its fees by over 10% further prejudicing the government. The scandal was picked after an audit ordered by the Ministry of Transport and Infrastructure Development. Group Five reportedly threatened to abandon the project if Zinara did not repay the VAT it paid to the Zimbabwe Revenue Authority (Zimra).

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