Gwanda solar project suffers potential setback as SA investor is arrested over R2 billion fraud
Joburg- THE construction of the 100 megawatt solar plant in Gwanda may suffer a potential setback following the arrest of South African investor and independent power producer Matshela Koko Thursday, over allegations of R2 billion fraud, Express Mail Zim has learnt.
A former interim chief executive of Eskom,Koko is the founder and managing director of Matschela Energy Limited, a company that on July 17, signed a power purchasing agreement with Zimbabwe Electricity and Distribution Company (ZETDC) with the level of investment pegged at US$250 million.
This agreement will see his company constructing the Gwanda Solar plant and in terms of the agreement he will build,own and operate (BOO) the power station and maintain it in terms of Section 42 of the Electricity Act.
Construction is set to commence in June next year and his arrest might scuttle flawless flow of the project since he had vowed to be on the ground in the country when he made the announcement that the deal had been concluded.
He however made it clear that he has a diverse team of experts, some of whom were expected on the country last month.
South African media was awash with the news of his arrest Thursday along with eight accomplices.
According to ESI Africa news, Koko was implicated in murky deals involving over R2 billion worth of irregular contracts.
One of the major one is the Eskom-owned coal-fired Kusile Power Station- ironically the Zimbabwe government entrusted him to build a major solar plant described by State- media as one of the biggest renewable solar projects in the Southern African region.
The Kusile power plant design and operational flaws were put under scrutiny in the South Africa House of Assembly.
Among his alleged accomplices, are his wife and stepdaughter, who are expected to make their first appearance in the Middelburg Magistrates’ Court in connection with contracts granted through Eskom.
A quick google search revealed that his digital footprint is marred with controversy.
He was once implicated in alleged graft involving Swiss engineering firm ABB, which scored an R2.2 billion contract in 2015; seven years before landing the Gwanda deal.
“The accused are to be arraigned on charges arising from alleged irregular contracts granted for the building of the Kusile power station valued at over R2 billion,” NPA Investigating Directorate spokesperson Sindisiwe Seboka told South African media Thursday.
He added that Koko and other suspects would face fraud, corruption, and money laundering charges.
The South African National Assembly even interrogated what resulted in the flawed designs, flawed operational capability of some of the Kusile power plant that was commenced during Koko’s tenure which saw him suspended and later bounce back – interestingly in a similar fashion with Zesa boss Sydney Gata.
Not withstanding the principle of presumption of innocence, given previous dubious accusations against Koko, the ZETDC risk being exposed for not adequately conducting due diligence,verify capability and probity before signing the agreement.
However, if the project smoothly sails through, it has potential to create at least 1000 jobs and improve power supply.
