By Tawanda Musarurwa

HARARE – The Ministry of Energy and Power Devel-opment allegedly overrode normal tender procedures to award ZESA division Power-Tel the contract to become the only authorized aggre-gator for ZETDC prepaid electricity tokens.

Appearing before the Parl ia-mentary Portfol io Committee on Mines and Energy, State Procurement Board (SPB) board member Mr Wil l iam Kurebgaseka said fol lowing earl ier cancellations of the same tender in 2012, a new tender was floated in 2013, which was however unilat-erally cancelled fol lowing

intervention by the Ministry of Energy and Power Devel-

opment through a letter written by permanent secre-

tary Mr Patson Mbirir i.

"A new tender was adver-

News Update as @ 1530 hours, Wednesday 27 April 2016

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Energy Ministry in blatant disregard of tender procedures

Mr Patson Mbirir i

tised on the 13 September 2013 and closed on the 29th of September. Subsequent to the closing of the bids, ZETDC wrote to the SPB requesting cancellation of the tender, the reason being given that the adopted con-cept of the third party vend-ing tender was not in l ine with Government's expecta-tions and requirements.

"It was also said that the few aggregators wil l have bargaining power and might in the future collude and demand a higher commission than justif ied. There is not much value addition done by the aggregators and the model would be more effi-cient if agents can directly go through the ZETDC

"The SPB having consid-ered the request from the accounting officer, that is, the ZETDC to cancel the tender acceded to that and the tender was cancelled in December 2013," he said.

It is al leged that PowerTel did not meet the technical requirements to play the role of aggregator for ZETDC prepaid electricity tokens.

And due to its apparent inadequacy, PowerTel then went ahead - contravening standard tender procedures - by floating an informal ten-der for seven days instead of 30 days without prior authority from the board.

The PowerTel tender (INF/PWT/36/2013) sought com-panies with expertise in pre-paid electricity vending to create distribution networks that make use of various technologies for the sale of prepaid electricity tokens, and it engaged a firm called ESolutions.

The SPB having noted that the accounting officer f loated an informal tender with a short closing period of seven days without authority in contravention of the procurement regulations

which require tenders to be returnable within 30 days unless a longer or shorter closing period is granted by the board, then resolved - through PBR 1695C of October 29, 2015 - that the accounting officer should pay $900 administration fees in l ine with Statutory Instru-ment 159 of October 12, 2012, for fai lure to fol low proper tender procedures.

Mr Mbirir i - in a letter dated July 8, 2015 to Aura Group which has been disputing the irregular process, wrote:

"The Ministry disputes that PowerTel's primary role and mandate in providing an aggregator service to ZETDC should have been subjected to procurement processes and prod\cedures.

"Accordingly, we would urge the Aura Group to accept this reality and not continue flogging this issue."

. ●

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By Funny Hudzerema

HARARE -The Competition and Tariff and Commission has drafted a new competition policy that will address issues of com-petitiveness an official from the Competition and Tariff Commis-sion (CTC) has said.

CTC chairman Mr Dumisani Sibanda said the new policy, to be submitted to Cabinet soon, will focus on trade, issues of tenders and how local products can be recognised on the interna-tional market.

“The new policy will look and monitor competitiveness and regulate restrictive business practices in the economy. The draft is ready and what is left is for it to be submitted to Cabinet,” he said.

The new policy will replace the current policy that was crafted in 1998, which the CTC feels does no longer suit with the modern technologies of competitiveness.

“The notable areas of weaknesses

include the definitions particu-larly of mergers, enforcement mechanisms, inclusion of later developed mechanisms of burst-ing cartels namely leniency pro-grammes and more elaborative coverage of various provisions.

“The revision of the law was long overdue because things are changing and the gap between current law and international best practice is now too wide,” he said.

He added that in terms of com-petitiveness Zimbabwe is still ranked uncompetitive because of a number of practices which the country is not practicing.

The draft also addresses issues such as the COMESA Competition Authority which has so far not dealt with cartels involving Zim-babwe, notwithstanding the fact that the establishment charter provides for issues with cross boarder effect.

Other issues to be addressed include advocacy programmes and activities aimed at publicising

the work and role of the enforce-ment content and measures for competition and consumer protection in the economy to all stakeholders.

Mr Sibanda added that the policy will close the gap of coherence between domestic and regional competition policies and goals. Competition policy is necessary because it provides business growth through competitive mar-kets, the best means of ensuring that the economy's resources are put to their best use by encour-aging enterprise efficiency and widening choice.

The policy also contains some enforcement mechanisms propos-als to deter trade and profes-sional associations from engaging in restrictive practices.

It recognises the existence of structural barriers in many sec-tors of the economy that act as impediments to business entry and frustrate the small scale businesses and Government’s efforts in empowerment and wealth creation.●

New Competition Policy draft complete

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BH24 Reporter

HARARE- Tobacco farmers have so far earned $65, 8 million from the sale of 24, 8 million kilogrammes of virginia tobacco since the tobacco selling season began on March 30, an increase of 89 percent from the same time last year, latest Tobacco Industry and Marketing Board (TIMB) statistics show.

The 24, 8 million kg of tobacco were sold at both the auction and contract floors.

TIMB indicated that a total of 5,4 million kg of tobacco worth $11,6 million was sold at the auction floors while 19;3 million kg worth $54,2 million was sold at the con-tract floors.

Most tobacco farmers have been opting for contract farming due to high costs of inputs.

The tobacco sold is 72,98

percent more than what was sold during the comparable period last year. A total of 14,3 million kg worth $39,4 million had been sold during the same period last year.

Tobacco deliveries are expected to decline by 20 percent due to the El Nino induced drought which affected the crop.

Meanwhile tobacco farmers have raised concern over the new payment system saying they are being paid late and the money is taking time to reflect in their bank accounts.

TIMB said the top price for the contract floors was $5,60 per kg while at the auction floors it was $4, 99 per kg.

The lowest price that has been recorded so far is $0,10 per kg. A total of 76 bales have so far been rejected due to poor quality and poor packaging this season, com-pared to 79 bales rejected the same period last year.

Currently a total of 11 630 bales of tobacco have been rejected compared to 20 015 during the same period last year.●

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Tobacco farmers' earnings up 89pc to 65,8m

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HARARE -Econet Wireless is for the first time introducing an airtime credit service via the EcoCash platform which will allow more than 5 million customers to borrow airtime.

The innovation, also the first of its kind in Zimba-bwe, means that an Econet customer can use EcoCash or the EcoCash App to borrow airtime in denominations from 30c to 75c depending on a customer’s historical usage.

Explaining the service, Eco-cash general manager Ms Natalie Jabangwe said given the recent cash shortages being faced in Zimbabwe, this service makes it possible for EcoCash airtime sub-scribers to quickly purchase airtime in the case of an emergency.

Repayments can always be made from EcoCash airtime

purchases.

Customers will be required to have an active line for three months and a minimum airtime balance of 5c at the time they want to borrow air-time. However, she stressed that an EcoCash balance at the time a customer wants to borrow airtime is not a requirement to benefit from this service.

“All credit airtime advanced attracts 10 percent service

fee which is payable within seven days, on next airtime recharge,” she said.

Econet Wireless CEO Mr Douglas Mboweni said the airtime credit service has been introduced to assist its customers who may some-times be in urgent need of airtime to make calls.

“Understanding our customer behaviour and meeting their needs allows us to introduce trust based services that

deliver value and unparal-leled convenience,” said Mr Mboweni.

He said the Airtime Credit Service on EcoCash pro-vides a one-stop shop for all mobile money services Ecocash, EcoSure insurance, EcoCash loans and now Eco-Cash airtime credit service, amongst others. Ecocash channels provide greater and improved customer experi-ence and convenience.●

Econet extends credit facility EcoCash Mobile Money service

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HARARE -The Industr ia l index cont inued in the pos-i t ive today after gain ing a further 0.28 points to c lose at 102.14 points.

The index was propped up by gains in several coun-ters with Innscor surg-ing $0.0088 to 0,2188, Delta advancing $0,0027 to $0,6425 and Barc lays r is ing to $0,0287 after a $0,0017 gain. Other gains were in Old Mutual which added $0,0006 to c lose at $2,2450.

On the downside Econet came off $0,0050 to $0,2500

and Radar shed $0,0039 to sett le at $0,0161.

The Mining index was steady

at 20.16 points as Bindura, Falgold, Hwange and RioZim maintained previous pr ice

levels at $0,0102, $0,0050, $0,0300 and $0,1100 respec-t ively - BH24 Reporter ●

ZsE14

ZsE continues on positive trajectory

BH2415

MovERs CHANGE TodAy PRiCE UsC sHAKERs CHANGE TodAy PRiCE UsC

BARClAyS 6.29 2.87 RADAR -19.50 1.61

INNSCOR 4.19 21.88 ECONET -1.96 25.00

Delta 0.42 64.25

OlD MUTUAl 0.02 224.50

iNdEx PREvioUs TodAy MovE CHANGE

INDUSTRIAl 101.86 102.14 +0.28 points +0.27%

MINING 20.16 20.16 +0.00 POINTS +0.00%

16 ZsE TABlEs

ZsE

iNdiCEs

stock Exchange

Previous

today

17 diARy oF EvENTs

The black arrow indicate level of load shedding across the country.

PoWER GENERATioN sTATs

Gen Station

25 April 2016

Energy

(Megawatts)

Hwange 509 MW

Kariba 459 MW

Harare 30 MW

Munyati 18 MW

Bulawayo 22 MW

Imports 0 - 400 MW

Total 1494 MW

• 29 April - CBZ AGM; Place: Stewart Room. Meikles Premier Hotel, Harare; Time: 15:00pm

• 05 May - Barclays Bank of Zimbabwe AGM; Place: Meikles Mirabelle Room; Time: 1500hrs• 18 May - ZB Building Society AGM; Place: 21 Natal Road, Avondale, Harare; Time: 12:00hrs

• 18 May - The 76th AGM of Astra Industries Limited; Place: Auditorium at Astra Park, Corner Ridgeway North/Northend Roads, Highlands, Harare; Time: 12:00hrs

• 19 May - The Fifth Annual General Meeting of Padenga Holdings Limited; Place: Royal Harare Golf Club, 5th Street exten-sion, Harare; Time: 08.15am

• 19 May - NMBZ AGM; Place: Unity Court, Corner 1st Street Kwame Nkrumah Avenue; Time: 10:00am

• 19 May - Turnall Holdings AGM; Place: Jacaranda Room, Rainbow Towers; Time: 12:00

THE BH24 diARy

CAPE ToWN - South African power util ity Eskom is not under pressure to tap inter-national markets to help fund its 340 bill ion rand ($23,5 bill ion) five-year expansion plan, its chief executive said on Tuesday.

State-owned Eskom is build-ing new plants and trans-mission lines to augment a power grid that nearly collapsed in 2008 and was forced to implement con-trolled blackouts, or load shedding, early last year that dented economic growth.

"Our funding for last year is complete and most of the funding for this year

is done," Eskom CEO Brian Molefe told reporters. "We never issue less than bench-mark which is anything above $500 million, so it can be $750 million or $1 bill ion."

He said the timing would depend on market condi-tions, adding that the suc-cessful pricing of a 10-year dollar bond by the National Treasury in April was a good sign.

Eskom is building three new power plants and expects to add 5 620 megawatts (MW) to the network by 2018. - Reuters.●

REGioNAl NEWs 18

Eskom to spend $23,5 billion on new plantsBob diamond wants Barclays Africa back

Bob Diamond confirmed months of speculation: after a four-year enforced break, he wants back into his old Afri-can business -- with financial firepower courtesy of Carlyle Group lP.

The American-born finan-cier said on a conference call Tuesday that he and inves-tors including US private-eq-uity giant Carlyle are working together on a potential bid for Barclays Plc’s controlling stake in its African business. Dia-mond ran Barclays before his 2012 ouster during the libor scandal.

“The consortium has commit-ted long-term strategic inves-tors,” Diamond said on the call. “The funding is in place. There is support for this potential transaction.”

Atlas Mara ltd., the ven-ture Diamond and Ugandan entrepreneur Ashish Thakkar formed to buy African banks, said earlier Tuesday that the two men’s firms were in talks to potentially mount a bid for

Barclays Africa and combine it with Atlas Mara. A combina-tion with Barclays Africa Group ltd. would rapidly accelerate Atlas Mara’s growth and give Diamond, 64, control of oper-ations he championed as the chief executive officer of the British lender.... - Bloomb-erg●

Barclays Plc said profit fell 25 percent in the first quar-ter as it posted a larger loss in the division that holds the businesses it no longer wants, while revenue at the investment bank fell less than expected in turbulent markets.

Reported pretax profit fell to 793 million pounds ($1,15 bill ion) from 1,6 bill ion pounds a year ago, the london-based bank said in a fil ing Wednesday. Revenue dropped 13 percent to 4,6 bill ion pounds, topping the 4,48-bill ion pound average estimate of nine estimates provided by the company.

“The performance of the core today shows the potential power of the group once it is freed from the drag of non-core,” chief executive Jes Staley said in the statement. “As these deals complete, we are reducing risk-weighted assets and, crucially, elim-inating costs which have a direct impact on our profit-ability today and mask the true performance of our strong core business.”

Mr Staley has asked inves-tors to endure short-term pain so he can boost returns by exiting some operations. Barclays is looking to cut risk weighted assets at the bad bank, led by John Mahon and Harry Harrison, to about 20 bill ion pounds by 2017. The lender cut RWAs at the unit by 3 bill ion pounds to 51 bill ion pounds in the quarter.

Trading Revenue

Revenue from the firm’s markets business dropped 4 percent, as a jump in credit trading offset declines in equity- and macro-trading units. Investment banking fees fell 12 percent, and the firm said income in April has fallen from the first quarter.

Barclays had warned the first quarter would feature lower revenue from the investment bank after a weak perfor-mance in March. Stil l, those declines were smaller than drops at US rivals as deals and trading ground to a halt amid economic jitters.

“Good performance in a chal-lenging environment,” Raul Sinha, a JPMorgan Chase & Co. analyst, wrote in a note to clients. Profit and revenue were above his estimates, he said.

Mr Staley, 59, is trying to convince investors of the long-term benefits of the maintaining the investment bank, even after it gener-ated lower annual returns than Barclays’s consumer

and credit-card businesses. The CEO has resisted calls to spin off the unit, and instead opted to cut the dividend for two years and sell down the bank’s stake in its Africa business to boost capital.

The stock has fallen 21 percent this year, extend-ing a two-year slump that’s left the bank trading at about half the book value of its assets. Chairman John McFarlane, 68, pledged in July to double the share price over the next three to four years.

This is Barclays’s first results after under a new structure formed to comply with British ringfencing rules requiring the separation of consumer and investment-banking arms by 2019. The ring fenced Barclays UK unit has about 70 bill ion pounds of risk-weighted assets, while Barclays Corporate and International has 195 bill ion pounds, including the invest-ment bank, most of wealth management and the US and international cards busi-nesses. - Bloomberg●

iNTERNATioNAl NEWs 19

Barclays posts 25 pc drop in quarterly profit on bad bank loss

By Nigel Gambanga

Earlier this month the Min-ister of ICT Supa Mandiwan-zira gazetted new Quality of Service (QoS) regulations for the Zimbabwean telecommu-nications sector.

For people who have been following these develop-ments, this is the same set of draft regulations that had POTRAZ, the telecoms industry regulator seeking input from Zimbabweans in September last year.

Under the new regula-tions, the performance of all telecoms operators and their delivery of service is expected to meet a new set of standards which will be monitored by POTRAZ.

you can access the complete regulations from POTRAZ, and you can also access the draft regulations that give an outline of the framework from the POTRAZ website.

This new QoS framework is

expected to bring in new levels of accountability which will protect consumers from an unreliable performance

from all registered operators while ensuring that certain levels of service value are delivered.

It won’t be empty talk only, though. There are some pro-visions for the enforcement of the regulatory framework

20 analysis20 ANAlysis

Zimbabweans to benefit from new telecoms service quality regulations

which have been included.

POTRAZ is empowered to penalise operators that fail to comply with the key per-formance indicators or are unable to resolve consumer complaints within the resolu-tion-time set by the regula-tions.

What do the regulations cover?

Some of the service quality targets that have been set by POTRAZ include the following

• for mobile voice telecom-munication, the activation of service has to be within 5 seconds

• operators have been given an allowance of up to 1 hour for service downtime in mobile voice telecommuni-cations

• a target of at least 95 percent has been set for the call success rate (CSR) – which refers to the number of calls established over the total number of mobile call

attempts to a valid number

• there’s a target of at least 80 percent for the Call Com-pletion Rate (CCR) – which is the percentage of calls that have been success-fully setup, maintained and terminated normally by the caller or receiver to the total number of call attempts in a specific time period.

• the audio voice quality of mobile voice calls should be deemed as being at least fair

• there is a 98 percent tar-get has been set for SMS delivery success

• for mobile broadband, the data service availability target- which is the ratio of successful logging on and attached to the network to the total attempts – has been set at 98 percent

• fixed data and internet services have been given a 99,99 percent target for ser-vice availability

• for fixed internet services,

when it comes to the down-link throughput – which is the speed with which data can be transmitted from a remote device to a local device, there is a target of at least 95 percent of speed agreed with the user.

Some of the other parame-ters that have been set are for consumer care and these apply to all service under local telecommunications. These include

• a target of 1 hour or less for responding to a subscrib-er’s failed attempts to check the account balance

• a request for a PUK code should be met within an hour

• a request for blocking a reported lost or stolen SIM card for which subscriber ownership has been con-firmed should be met within 30 minutes during working hours

• the reflection of bill pay-ments for a mobile account

should take less than 5 min-utes and at most 10 minutes for online payments after there’s a receipt of payment

A look at these regulations shows how Zimbabweans stand to benefit from better value provision from opera-tors.

Issues like service quality have received a measura-ble value and customer care which is largely disappoint-ing from the host of service providers in the country has also been placed under the spotlight, something that will benefit from the weight of the law.

However, for this to have the intended impact POTRAZ will have to make sure that the market is fully educated on how to raise complaints, fol-low up on poor delivery and share their worst experiences with the relevant people. - TechZim ●

21 analysis21 ANAlysis