Intertoll deal bleeds ZINARA

TINASHE MAKICHI

A tolling deal between the Zimbabwe National Roads Administration (ZINARA) and Intertoll Africa has come under scrutiny amid revelations it was drawing more than the roads administrator.

ZINARA entered a tolling deal with a South African firm — Intertoll Africa to raise money to pay back the loan from the Development Bank of South Africa (DBSA) which has since turned out to be an albatross on its neck with collections falling short of requirements following currency reforms.

The ZINARA-Intertoll deal came after the completion of the 880km Plumtree -Mutare highway, probably the biggest road investment undertaken by the government in nearly 40 years.

Well-placed sources told Business Times that Intertoll is continually reviewing its stake and takings while ZINARA has not been reviewing its position.

Business Times can report that the Treasury has since made moves towards scrutinising the structure of the deal.

“The deal is no longer making sense as it has now become an albatross to ZINARA. They are even calling to cancel the deal so that ZINARA can collect on its own and settle its obligations with DBSA.

 So, there is now a possibility of a deal restructuring and there is a push for negotiations,” an insider said.

“There were delays as ZINARA was waiting for the appointment of a new chief executive.”

Intertoll Africa Chief Operations Officer Ajit Maharaj refused to comment when asked by Business Times.

 “We are bound by a client supplier confidentiality agreement. We are therefore not in a position to comment,” Maharaj said.

There are also concerns being raised around how much has been paid off so far from toll collections towards settling the DBSA loan for the past nine years.

According to a toll collection document seen by Business Times this week, the situation was dire in 2019 where net revenue was negative at 43% in April and 58% in July the same year.

This publication is informed that the situation has in some instances forced ZINARA to access funding from other streams to supplement this tolling deal.

ZINARA also has a number of contracts that are causing serious headaches apart from the DBSA loan.

There are strong indications that ZINARA revenue streams including fuel levy, abnormal and overload charges as well as transit fees have been on a decline resulting in the national road administrator defaulting on the DBSA loan repayment.

According to information availed to Business Times, monthly installments amount to aboutUS$3m including US$1.45m in interests.

There are also indications that the government, through ZINARA, was muscled out of the race for Intertoll Zimbabwe stake following an alleged underhand move that saw a private firm, Mabentu Consortium eventually getting the stake.

There are indications that there were deliberate efforts by some top executives at ZINARA together with officials at the transport ministry to fail to trigger the contract clause that empowered ZINARA to buy the Intertoll Zimbabwe stake.

Group Five disposed of its shares in Intertoll Zimbabwe to a consortium comprising MTC acquiring 50%; Magareng 20%; and LSNM acquiring 30% of the shares.

The consortium is collectively referred to as Mabentu Consortium.

Group Five Limited and Group Five Construction Proprietary Limited (Group 5), a leading African construction, concessions, and manufacturing group, was placed under business rescue last year leading to the disposal of its stake in Intertoll Zimbabwe.