VP Mphoko sold dummy over Hwange equipment

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VICE-President Phelekezela Mphoko may have been sold a dummy by Hwange Colliery Company Limited (HCCL) when he was made to commission the $32 million mining equipment some of which has reportedly turned out to be second-hand and obsolete machinery, it has been learnt.
(File Photo: Hwange Colliery Company
(File Photo: Hwange Colliery Company

VICE-President Phelekezela Mphoko may have been sold a dummy by Hwange Colliery Company Limited (HCCL) when he was made to commission the $32 million mining equipment some of which has reportedly turned out to be second-hand and obsolete machinery, it has been learnt.

By Clanton Simuchembu

Some of the much-publicised equipment has already broken down before any mining has taken place with the board and management reportedly trying to sweep the matter under the carpet.

One of the second largest shareholders, Nicholas van Hoogstraten, was recently quoted in the media expressing reservations over the importation of the equipment alleging there was “gross corruption” in the acquisition of the machinery reportedly because it was bought from Third World countries.

HCCL corporate identity and public relations manager Elta Sanangura told NewsDay: “The fact is that we are still in the commissioning phase of the new equipment. We have teething problems as we do load-testing of the equipment.

“Specifically, we have hydraulic system problems on the BEML equipment. The problem has been diagnosed to be a manufacturing problem, the manufacturer is expeditiously responding to this problem and providing new components and spare parts. These new parts will arrive this week. The fact that the same problem has been found on different machines means that it is a manufacturing problem.”

Sanangura added: “Such problems occur during the commissioning phase. Once the machines are deployed into production and their performance during operation has been monitored and approved, then commissioning can be completed. It is unfounded and premature to report that the machines are second-hand. They have new serial numbers and are under warranty.”

Responding to the earlier reports, BEML Ltd in a letter to HCCL managing director Thomas Makore yesterday added: “We confirm that the mining equipment supplied to M/s Hwange Colliery Company Limited (HCCL) is indeed brand new and is in complete compliance with the specifications agreed to between HCCL and BEML and supplied after due certification by our quality team, besides your own team.

The EXIM Bank of India also assessed BEML’s capacity and capability in supplying quality equipment before they finalised to support the finance package. As such, there is no room for supplying any equipment of inferior quality.

“It is pertinent to mention here that apart from holding a major market share for this equipment in India, BEML has exported similar products to more than 60 countries globally, which are gainfully deployed.”

But insiders at the colliery company said some of the seats, types and other ancillary parts of the equipment were clearly worn out before the machines could even commence open cast operations.

It is understood that one of the new graders reportedly broke down at the beginning of June this year while it was in the process of surfacing of one of the roads at the colliery in preparation for Mphoko who officiated during the Kamandama Mine Disaster commemorations where the colliery community remembers the 427 miners who perished in an underground explosion on June 6, 1972.

“To make matters worse, it is only the top management and some board members who went to both Belarus and India to buy the equipment who were not even familiar with the mining operations let alone on how to operate or repair the machinery,” a well-placed source told NewsDay last week.

The issue of obsolete equipment has reportedly attracted the interest of the President’s Office who have demanded an explanation from the management on how the equipment was sourced. If it was proved that the procurement process was flawed this would be an embarrassment to both government and other stakeholders.

This also came at a time when HCC has reportedly spent more than $200 000 to hire chairs and tents from a Harare-based catering firm while employees were owed over 20 months’ salary arrears.

This was despite the fact that the colliery company has a catering department that has tents and chairs to accommodate more than 500 guests at any given time.

Some of the officials who graced the commissioning of the mining equipment included several Cabinet ministers, Reserve Bank of Zimbabwe officials, Indian ambassador and top Belarus government officials among others.