Corruption rocks multi-million Ethanol project in Chisumbanje
By Tichaona Sibanda
13 October 2011
The Chisumbanje ethanol plant, which cost $600 million to construct, is
reportedly embroiled in serious corruption allegations following revelations
that government only controls 10 percent of the shares in the project.
The controversy surrounding the money spinning project, approved by
government on the understanding it will have a controlling stake of 51
percent, has sucked in Joseph Made, the Agriculture, Mechanisation and
Irrigation Development Minister, according to the state media.
The ZBC news website reported that Made, and two officials from his
ministry, have been summoned by a Parliamentary Portfolio Committee on
Agriculture to explain this anomaly.
During a Parliamentary Portfolio Committee meeting recently, at which Made
gave oral evidence, it was discovered the Ethanol project did not comply
with the country’s indigenization laws. The same committee, according to the
ZBC, heard information gathered by a national taskforce indicating that
government recommended against the project between ARDA and two firms,
Macdon Investments and Ratings Investments, which the state media said is
owned by business magnate, Billy Rautenbach.
A source alleged that Macdom Investments and Rating Investments Ltd are
foreign registered companies but 90% of their shareholding is owned by
Rautenbach. Arda, the local investment partner which represents the
government, controls the remaining 10 percent.
‘This is a major scandal which has been known and talked about in the
corridors of power. There is no public information on who is representing
government in the Macdom and Rating Investments board. The fact that Made
told Parliament he was also unaware of who controls what at the project
tells us something is not right at this plant,’ our source said.
‘This is a multi-million dollar project and people thought that by taking
short cuts and trying to hide information they would become very rich. What
these people forgot was that this project displaced over 300 000 people, the
same people who are demanding answers to this whole set up,’ the source
added.
The project, when fully operationally, is supposed to provide 70 percent of
Zimbabwe’s fuel needs and will also supply electricity to Mutare and several
parts of Manicaland.