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How Zimbabwe Is Losing Money to Shadow Firms Like Linash Enterprises

How Zimbabwe Is Losing Money to Shadow Firms Like Linash Enterprises

Zimbabwe’s efforts to enhance its road infrastructure have been marred by allegations of financial mismanagement, with billions of dollars reportedly lost to shadowy companies like Linash Enterprises.

In 2022, the government earmarked ZW$68 million for road rehabilitation, equivalent to less than US$1 million at the interbank rate. However, discrepancies emerged when the figures submitted to Parliament by the Minister indicated that over US$7 million had been paid out to construction companies contracted for the projects.

Despite the initial allocation, additional funds in United States dollars were disbursed, raising concerns about transparency and accountability in the use of taxpayer money.

Minister Mhona disclosed that companies like Birthday Construction, Zada Construction, and Central Mechanical Engineering Department received substantial payments for road repair.

Lesser-known entities such as Linash Construction and Release Power also received sizable sums.

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While the Minister claimed that procurement laws were followed in awarding the tenders, subsequent assessments revealed substandard workmanship and raised doubts about the legitimacy of the companies involved. Both the Minister and his deputy condemned the quality of work during visits to project sites, promising to blacklist the companies responsible.

The lack of transparency surrounding the contractors further fueled suspicions of corruption, as the true identities of the companies’ owners remained undisclosed. Despite Minister Mhona’s assertions regarding the directors of these companies, investigations revealed discrepancies between the names provided and those registered at the Kwekwe Council Offices.

Residents, officials, and legislators alike criticized the poor quality of the road repairs, highlighting a lack of accountability and value for money. Linash Enterprises, in particular, faced scrutiny for allegedly commencing work at multiple sites before formalizing contractual agreements, raising concerns about the Ministry’s exposure to legal risks.

The reported financial irregularities underscore the urgent need for greater transparency and oversight in government procurement processes. Calls for accountability have intensified, with stakeholders demanding a thorough investigation into the alleged mismanagement of public funds and the prosecution of those found responsible.

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