Kaukonde blames Zim crisis for ZIMRA woes

SITHENI NLEYA

Mike Harris Toyota Chief Executive Officer, Brian Kaukonde, has blamed policy inconsistencies that led to a hyperinflationary environment for failure to deliver vehicles to the Zimbabwe Revenue Authority (ZIMRA).

The company failed to deliver vehicles ordered by ZIMRA and on Monday told lawmakers that out of the 81 ordered vehicles, they were only able to deliver on nine arguing the US$3.9 million Zimbabwe dollar equivalent paid was eroded by inflation.

Thirty-five paid for Toyota Hilux double-cab cars and 50 Toyota Corolla vehicles were never delivered.

Kaukonde and the company appeared before the Public Accounts Committee (PAC) chaired by Kuwadzana MP Chalton Hwende where the businessman blamed the economic woes and ever changing dynamics for the failure to deliver.

Hurungwe East MP Chenjerai Kasangausaru questioned how the company kept on taking payments from ZIMRA despite full knowledge of the prevailing inflation and economic instability that made the payments insufficient to fulfil on the agreement.

It had emerged that Mike Harris Toyota had won the contract on the basis that they would be able to source for foreign currency.

“One of the biggest issues we raised was on foreign currency that as Mike Harris, we do not go and outsource foreign currency elsewhere. We follow what we are bound with by the law. ZIMRA helped initially to facilitate the acquisition of foreign currency through the Reserve Bank of Zimbabwe.”

Kaukonde was quizzed on whether they will be able to refund ZIMRA to which he responded using the High Court Commercial Division judgement that ordered the firm to give ZIMRA nine Toyota Corolla vehicles by end of June this year.

Hwende ordered that both parties should submit written evidence to try and find a lasting solution on the matter.

ZIMRA claimed to have made payments of ZW$ equivalent of US$3.9mn for procurement of 35 Double Cab vehicles and 50 Toyota Corolla vehicles but Mike Harris failed to meet its side of the bargain with Kaukonde saying this was because “Zimbabwe happened” in expressing how the financial crisis and inflation affected the deal.

Records presented show that the tender was flighted and won in 2020 while the contract was signed on June 25. The first payment was made on June 22, 2021 with the value of money only buying 20 Double Cab vehicles.

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