Mpofu, Mangwana under pressure over Zisco report

• Kadoma gold dealer shot by top cop

• Mnangagwa implicated in dirty gold case

• Mnangagwa named in $37bn scandal

• Zanu PF probe targets Mugabe heir

• Zanu PF companies probe report kept secret

• New twist in dirty gold scandal

• Mnangagwa men threaten to shoot journos

By Staff Reporter

INDUSTRY and Trade Minister Obert Mpofu and his Anti-Corruption counterpart, Paul Mangwana, were increasingly isolated this week after Zanu PF's warring factions closed ranks to thwart publication of a report implicating senior ministers in corruption at state-owned steel manufacturer, Ziscosteel.

On Wednesday, Mpofu -- under pressure from leading Zanu PF power brokers and the intelligence services -- appeared to go back on his earlier claims that ministers and MPs had participated in the looting of Ziscosteel's assets.

Mpofu initially told a committee of MPs in parliament that the report -- compiled by the National Economic Conduct Inspectorate -- "contains names of my colleagues in the ministry, MPs and employees at Zisco".

Called a second time before the same committee on Wednesday, Mpofu backtracked on his earlier claims, now suggesting that companies connected to the said ministers and MPs were the ones behind the looting.

New Zimbabwe.com learnt Friday that the intelligence services had counselled against the publication of the report fearing that it would damage central government irreparably with leading contenders for Zanu PF leadership all fingered in the corruption.

The National Economic Conduct Inspectorate, run by an elite team of Central Intelligence Organisation officers, has been recalling the report from a selected few officials who had copies to prevent a leak, sources said.

And in a clear sign that the government is keen to keep a lid on the report, State Security Minister Didymus Mutasa, to whom the National Economic Conduct Inspectorate reports, claimed the report was Mpofu's creation.

In an interview with New Zimbabwe.com, Mutasa said: "If Mpofu knows some corrupt ministers as he claims, why doesn't he come out and say ministers X or Y looted Zisco?

"I am the minister of State Security and what I am saying is that I haven't seen the report."

Asked if that meant that Mpofu had misled parliament about the existence of the report, Mutasa replied: "Yes, I am saying it doesn't exist."

Mangwana and Mpofu had both issued threats that the ministers implicated in the looting would be arrested.

Mangwana said last week: "Very soon we will take action and police will make arrests of those who were involved in corruption at Ziscosteel irrespective of their political or social status. It doesn't matter if they are ministers or MPs.

"As long as they were involved they will be arrested. If we find that a crime was committed by whoever we will call in the police and provide evidence for prosecution."

Reserve Bank governor Gideon Gono said in July the central bank had saved Ziscosteel from closure by providing an emergency $2 trillion (old currency) lifeline.

He said production at the company had plunged by 88% from 14 200 to 1 600 metric tonnes in February. The firm is saddled with foreign debts in excess of US$126 million. Ziscosteel is one in a chain of major parastatals which are technically insolvent.

Indian company Global Steel Holdings recently withdrew from a US$400 million contract at Ziscosteel after it was angered by operational chaos at the local firm and shortages of critical inputs such as coking coal, spare parts, fuel, as well as plant and equipment.
JOIN THE DEBATE ON THIS ARTICLE ON THE NEWZIMBABWE.COM FORUMS
newsdesk@newzimbabwe.com