The US$17.7 million loaned to government by business tycoon Kuda Tagwirei in 2018 blocked foreigners from taking over controlling stake in the Feruka pipeline.
This emerged at a time when Zanu-PF member Christopher Mutsvangwa and reserve bank of Zimbabwe advisor Eddie cross have upped their game in despising the business ventures being undertaken by the Sakunda boss.
Highly placed sources in government said MOGS, whose agenda is being pushed by Mutsvangwa and Cross, was thrown out by government after it emerged that they were offering expensive fuel while also wanting to take shareholding in the feruka pipeline.
“MOGS was asked by government to present their proposal on the table which included the purchase of the 50 percent from Lonmin for US$40 million and become a partner for government.
“In the proposal, MOGS wanted to build a second pipeline and become shareholders in the strategic underground storage in Mabvuku, they proposed to loan government US$22.7 million on condition that they get 25 year lease of the pipeline and at that time MOGS were not aware that government had also approached Tagwirei for the money. Of the loan, Tagwirei raised US$17.7 million at 6 percent interest rate. This put the final nail into the matter as MOGS were completely shut out,” said sources.
Sources in the ministry of Energy and Power Development said it is at this point that Mutsvangwa and Cross were outwitted by Tagwirei as he stopped foreigners to participate in the pipeline hence unending fights.
“Mutsvangwa and Cross were promised US$2.5 million if they could have structured the MOGS deal. The two also approached Tagwirei with two different groups of Chinese to buy chrome as they thought Tagwirei owned Landela and Sotic, a deal which fall by the way side. Mutsvangwa then used his monthly income of US$200 000 from a local chrome mining company to paint black Tagwirei’s businesses,” said the source.
Research reveal that Tagwirei had a near monopoly in the fuel sector during the Governmnet of National Unity when he had 80 percent of the market share, he partnered Trafigura in 2013 on condition that monopoly was going to be reduced to between 30 and 40 percent.
This was cemented by sources in the ministry of Energy and Power Development who indicated that Sakunda signed a take or pay agreement to pump a minimum of 40 million litres and failure to use the space Sakunda would pay for it under the then Minister of Energy and Power development Elton Mangoma.
Source: 263 Chat