By Koswe
Zambia has definitely been captured by a group of mafias disguised as businessmen who are not only bribing PF ministers but even institutions tasked to fight corruption.

The latest group of State Mafias is being led by an Indian businessman known as Khumar Krishna who mostly reside in South Africa where Guptas are on the run for their corruption.

Below is a report that Koswe investigative reporters picked from ZESCO manager’s procurement office, which was submitted to even ACC by 2017 for action but nothing has been done as Krishna has placed all key stakeholders into his armpit using corruption.

Meanwhile the Anti corruption commission (ACC) has been named as being part of the many institutions protecting State Mafias like: Krishna Kumar Malani from India, Brian Kambole as ZESCO Procurement manager and ZESCO MD Victor Mundende.

Billions have so far been plundered at ZESCO and reports made to ACC but nothing has been done.

See the corruption conduits owned by about only two Indians who are blood mafias and have running contracts with ZESCO and other government departments…

April 2, 2017

The Acting Director General

The Anti-Corruption Commission

Anti-Corruption Hse Cha Cha Cha Rd,

PO Box 50486,

Lusaka,

Zambia.

Dear Madam,

RE: FRAUDULENT AWARD OF CONTRACTS AT ZESCO

We wish to bring your attention the following:

There is a businessman of Indian Origin with a lot of contracts with ZESCO named Krishna Kumar Malani.

He lives in South Africa and is behind 6 companies namely KBH INDUSTRIAL, OCTO TRADING, SRC CONSTRUCTION, HOWELL ENERGY SYSTEMS PRIVATE LIMITED, CENTURION EXPORTS and WEB INTERNATIONAL. These companies are registered in India, Zambia and South Africa by the same man.

This man is the Senior Procurement Manager’s (Brian Kambole) closest Friend. He is suspected to have the entire procurement of ZESCO in his pocket.

Owner; Mr Krishna Kumar Malani

Associates; Mr Ashok Surajit

Tel No; +27114503150

+260 9557 78740

Email ID;[email protected]

[email protected]

[email protected]

Companies

OCTO TRADING ZA

Unit 6, Townsend Road,

Bedford view 2047,

Johannesburg, RSA

KBH Industrials (Z) Ltd

Longolongo Road

Lusaka

SRC Constructions

198, Makishi Road

Lusaka

Web International

Longolongo Road

Lusaka

Howell Energy Systems Private Limited

PLOT NO. A-24, SIPCOT INDUSTRIAL GROWTH CENTRE MATHUR VILLAGE,

ORAGADAM KANCHEEPURAM TN 602105 INDIA.

CENTURION EXPORTS (Details not known but can be extracted at ZESCO)

For many years, Mr. Malani, using all his companies has been fraudulently awarded so many contracts at ZESCO. Any scrutiny of the awarding process of tenders at ZESCO from 2017 going backwards to 2012 will reveal that every time there is a tender where Malani is participating usually with two different companies, he always emerges successful.

For Example in April of 2016, Zesco Advertised Tender number ZESCO 119/2016 for Burnet substation; Initially It was awarded to a different company by the Evaluation Committee. However, because Mr. Kambole and his bosses wanted the job to go to Malani, they requested for a second evaluation. The matter became so contentious that it even reached ZPPA.

Long Serving Employees from Lusaka Division (C Phiri and E Lienje) who had served ZESCO for many years lost their jobs because they did not initially award the job to Malani on the first evaluation. They were so keen to award the job to him that they had to doctor his BOQ just so he could be awarded the job, on the second evaluation for that matter.

This Tender had attracted renowned companies such as CONCO with past projects with ZESCO that were 20% or 800,000 USD (8m ZMK) Cheaper than OCTO Trading, one of Malani’s companies but ZESCO, offered the project to him.

This is just one example, there are various such cases involving him. It is not always in a tender that the lowest gets awarded but ZESCO’s International Competitive Bidding Processes always attract credible companies with a long list of executed projects in various countries but they are always shunned as long as one of Malani’s company/ies is/are participating.

Mr. Malani has a number of current running contracts under his many companies and yet ZESCO continues to award him more projects. In many cases, his prices are so high but ZESCO always find ways to manipulate the BOQS.

There are times his companies have participated in a tender containing more than 1 lot and where all bidders quote their prices per lot, Malani’s companies’ bid prices are deliberately read out in total in order to mislead the bidders attending the Tender opening as well as in some instances to manipulate the figures at tender evaluation to favour him.

A detailed investigation from Tender opening to evaluation would reveal these unfair and unscrupulous practices by an institution that is supposed to withhold the tenets of public procurement. Below are some of his past and running contracts:

KBH

Kitwe Luano more than 2 years 330kv.

Mukushi cu mine and chimsoro- delayed

Mpika 11kv switchgear delayed by more than 8 months

Mt.mehru- 6 months. Poor quality of CTs supplied

Kafue and Muzuma delayed beyond 6 months

OCTO TRADING

Luano 330kv. Incomplete. Bypass isolator in 220kv not fixed for.2 years.

Indeni refinery damaged GIS repaired at site due to poor quality of packing

SRC

MFEZ Project is currently being fully executed by SRC, Centurion and OCTO Trading and has suffered delays of more than 18 months and until now works are not complete

Downstream 132kV Station to get power from MFEZ is ready, while work on 132kV Switchyard at MFEZ yet to commence.

KBH NEW PROJECTS

Burrnet

Sanje

Kabwe and Coventry switchgear replacement

RMU-520 nos

NGR- 100 Nos

Ndola Sub Stn extension

Bawanamkubwa and Line works

OTHERS

Replacement of Switchgear -Balarstone

33/11kv Substation- Chibombo

Chisamba Substation

132kV – Kafue

As indicated above, SRC Construction/Centurion Exports/Howell Energy Systems/KBH Industrials/OCTO Trading/WEB International are all owned by one person, Mr. Malani.

On all the projects, he uses the same staff for execution and they do not even have a competent Project Manager. All senior Managers/Engineers have left the organisation. They are short of manpower. They are unable to hire new personnel because of internal issues. They are trying to manage with existing personnel hence all their projects are behind. Project managers at ZESCO from Distribution and Transmission can attest to this. They, as a matter of fact have one Project Manager to manage all Sites and as such he is unable to resolve issues at various sites, as a result all his projects get delayed and ZESCO turns a blind eye to this.

The bottom line is that an investigation of the revealed companies at ZESCO would divulge a lot of information. No one has raised dust because very few people are aware. However, a lot of ZESCO project managers are aware of this and at this stage there is very little they can do.

We are requesting your credible and able institution to investigate this matter with transparency and fairness. We would like you to Target the following at ZESCO to help investigations:

Clues –

Chiti Mulenga- Procurement

Mr. Sinkamba – Lusaka Division

Mathew Ndhlovu- Procurement

Further, we would urge you to request for tender opening results for all projects mentioned above as well as lists of the tender evaluating committee members that have in the past been assigned to evaluate the above mentioned Projects.

You will discover that one name will consistently appear on many lists as the chairman of the evaluation committee (Sinkamba). An institution of that size and many experienced engineers cannot only have one Chairman of the evaluation committee – He is the proxy Mr. Kambole uses to deliver projects to Malani. He suspected to have been receiving bribes along with Mr. Kambole from Mr. Malani.

The investigation must also be extended to Malani himself.