ED Sucked In The Shady $225 Million Deal Meant To Strip ZISCO Steel Of Its Critical Assets

The President’s name has been dragged into the mud as he is accused of being aware of the $225 Million shady deal that stripped ZISCO Steel of its critical assets, The Standard reports.

The president was reportedly aware of the fact that his allies would benefit from the deal according to the publication.

According to the publication:

Last May, little-known ZimCoke, headquartered in Harare’s Ballantyne Park, paid only $1 as a transaction fee that helped it grab the multi-million dollar coke ovens and an array of other key assets from the integrated steel company.

ZimCoke negotiated directly with the Ministry of Industry and Commerce and no tendering was conducted, nor was there valuation of assets.

..The deal was later railroaded by Mnangagwa and signed last May when Mangaliso Ndlovu, who refused to comment on the matter, was Industry and Commerce minister, after a series of negotiations between government and the investor without the involvement of Zisco management.

Apart from grabbing the coke ovens, ZimCoke would also take over 400 housing units plus 15 executive houses, 48% shareholding in ZimChem (a strategic subsidiary of Zisco) all refractory materials, which were purchased by the steelworks when it was repairing the batteries, pipes and electrical equipment.

The asset strip would also see Zisco losing granulated slag, which accumulated over the years and is used mainly by cement manufacturing companies, chilled pool iron (pig iron) produced from the furnace and Zisco wagons at the Dabuka hump marshalling yard as well as over 3 000 hectares of land.

According to ZISCO Steel minutes dated 27 May 2019 seen by the publication:

Outstanding minority shareholders issue, contents of the tripartite agreement between KFW, ZimCoke and government of Zimbabwe were not availed to the Zisco board,

Read the full report of the investigation done by The Standard here 

 


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