Corrupt cartels sabotage Tagwirei’s cement venture

Harare- BUSINESS tycoon Kuda Tagwirei’ investment in Khaya Cement (formerly Larfage) is being threatened with possible decimation by shady cartels that have sprouted within the company.

Senior employees are said to have underhand dealings that have contributed to artificial shortages and skyrocketing of cement prices.
Cement prices have shot up from US$9 to US $10 to US$20 to US$25, in just two months, causing uncertainty in the construction industry.

The shortages and steep price hikes have affected progress on national infrastructure projects, amid indications that there could be a third hand bent on scuppering development being implemented by the Second Republic and Zimbabwe’s ongoing construction boom.
Investigations by Express Mail Zim established that the monthly production for October dropped to 18 000 tonnes, against a capacity of 300 000 tonnes.

This slump in production forced some managers at the plant to embark on internal investigations which revealed that although some of the bottlenecks were caused by genuine factors, some syndicates at the company are conniving to worsen the situation.
That’s when the culprits were exposed.

In a dossier prepared by stakeholders with collaborative efforts from insiders, top management was sucked in the rot.

At the centre of the shenanigans is plant manager at the company ,Mr Linos Kutekwatekwa after it emerged that some of the shortages were caused by corrupt dealings.
“There are indications that engineers, technicians and procurement staff are working hand in glove in causing an artificial breakdown so that they can rake in thousands of dollars through an intricate web of corruption.
“At the production department, investigations show that there is rampant pilferage that starts through under declaring the amount of raw materials getting into the plant, sources at the company told Express Mail Zim .

This modus operandi then results in under declaring of the amount of product produced, as the implicated staff pocket the difference.

One of our multiple sources said the Khaya top management abused office and used tipper operators to carry cement spillages from the plant to the dump site, claiming to be carrying rubbles.

“They package it from the dumpsite to the market.This will be real pure cement spilled from the mill to the ground.

“There was a recent case where a tipper driver got involved in an accident during the night while carrying the cement.

“The operator implicated all the senior guys at the plant including the plant Manager,” said our source.

Our sources further revealed that the internal security department at the company has also been compromised and is suspected to be working with the cartel.
“All cases involving theft, especially at the plant seem to just die naturally!”

Suspicions have also been raised at the Kiln plant, headed by one Obert Chigora.

There have been unprecedented breakdowns of the kiln and it is highly suspected that Chigora, under the instruction of the plant manager deliberately orchestrares breakdowns.

“The kiln is one of their (cartels)cash cows and they use the breakdowns to milk the organisation through acquisition of spare parts.
“They inflate prices, and pocket huge sums of money each time the plant breaks down.

” Chigora was also implicated by tipper drivers as being part of the dump site syndicate.
Procurement manager Michael Bvumbe has also been implicated in malpractices involving acquisition of spare parts.
Also implicated are shift supervisors who are alleged to be aiding tipper drivers and all yellow machine operators in stealing both cement and fuel during night shifts.

“The team involves shift supervisors and the security guys, hence it has not been easy to catch them.”

Recently , Government Minister Sithembiso Nyoni said they are keeping a close eye on goings-on in the cement industry.

Backing her stance was minister of State Responsible for Implemenentation of Projects Jorum Gumbo said:

“We are concerned by the shortages and soon, we will assess how far this has affected implementation of special projects.”

National Housing and Social Amenities Minister Daniel Garwe also weighed in and said:

“Zimbabwe is undergoing a comprehensive construction boom. We are calling on cement companies to put their houses in order and kick out any malpractices that will affect the nation’s construction boom.”

Khaya Cement rebranded at the start of this year after tycoon Kuda Tagwirei took over the company in a major buy out.