Supa: ‘the Crook’ Behind Telecel Takeover
28 July 2015
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In 2011 Supa Mandiwanzira interviewed President Mugabe on his talk show Talking Business with Supa. The First Lady looked on as the former ZBC news anchor pressed the president on the GNU, and concerns from the business sector on rushing towards another general election. Mandiwanzira has always been fond of Mugabe. One can’t miss the huge portrait of a youthful Mugabe that sits on the wall of his ZiFM’s Stereo boardroom.

Fast forward just a few short years later and now Honourable Mandiwanzira is the youngest cabinet Minister in Mugabe’s government. His meteorical rise has been remarkable. In 2013 he was elected into parliament representing Nyanga South. He deputized Jonathan Moyo in the information ministry. After a cabinet reshuffle in December 2014 the former Al-Jazeera journalist became the ICT Minister. Like many of his predecessors, the new Minister set out to take on Telecel Zimbabwe (TZ), the nation’s second largest mobile network.

Early March, the Minister announced that cabinet had set up a committee to wind down Telecel operations. He said that Telecel was in breach of two major laws, non-payment of license fees, and failure to regularise its shareholding. However, the Minister was wrong, as Telecel Zimbabwe( TZ) entered into an agreement with Potraz to pay the US$137million over a period of 7 years. The Minister took advantage of the long myth that Telecel gets a free ride and he sought to exploit it. However TZ has met all their license payment deadlines, with the next instalment expected December 2015. Hardly known to the public, Empowerment Cooperation (EC) headed by TZ Chairman James Makamba has been in disagreement over 11% of the company’s shareholding. EC bought these shares from Orascom during the Zim Dollar era, however they have failed to honour the transaction, since they lost value when the economy became dollarized. The Minister is aware of this, and again sought to play divide and rule and claim the company is not indigenized justifying the cancellation of the licence. Mandiwanzira’s wreckless comments caused panic in the market. TZ’s brand took a hit, employees were on edge, and the country nervously watched the fate of one of the few companies that was still making a profit and contributing revenue to the government. For weeks TZ faced the wrath of the State Media, as Mandiwanzira wanted the value of the company to fall, making it easier for himself, and political vultures to swoop in and take the assest at a much cheaper price. He would be seen as saving the day.

It later emerged that Brainworks had offered to buy EC’s 40% stake for $20million. One needs to understand the politics behind this. Local Government Minister Saviour Kasukuwere and Higher Tertiary Education Minister Jonathan Moyo have long been the political muscle behind Brainworks. Patrick Zhuwao, EC Managing Director, is said to have turned his back on Makamba and work with the two government officials to pull off the surprise takeover. They also have a common enemies in James Makamba & former Vice Present Joyce Mujuru, who was Communication Minister at the time Telecel was awarded its license. Jonathan Moyo was the Information Minister who pulled the plug on Makamba’s JOY TV, the country’s first privately owned TV station in the early 2000s. He too was behind the smear campaign using state media, at a time many prominent businessmen including Makamba were arrested for allegedly externalizing foreign currency and violating exchange rate laws. Kasukuwere benefited the most from Makamba’s arrest and exile. He took over his constituency in Mt.Darwin and supported efforts to have him re-arrested. There is also the belief that Telecel is the financial muscle behind Mujuru. As both Ministers are said to be part of Generation 40, it was important for them to muscle out Makamba, so that they can prop up their war chests for 2018 under the guise of Brainworks. It’s now become public secret that Kasukuwere is in the hunt to succeed the 91 year old, even though he recently distanced himself from the hotly contested succession race. For a while Mandiwanzira was key to SK’s and the Prof’s plans. However, Mandiwanzira having now settled in his new portfolio will not be used as a pawn. He has now aligned himself with Vice President Mnangangwa, distancing himself from the G40, as they disagreed on the direction they should take over Telecel.

Appearing before the parliament portfolio on ICT, Mandiwanzira boasted that he had received many calls from investors from different countries who had interest in pouring money into the mobile operator. However, the public has since learnt that he has blocked external investors and instead announced that unknown Zarnet would buy out both Vimpelcom & EC. Zarnet is a government owned internet provider that made a loss of US$290 000 in 2013 as was reported by the Auditor General. Little is known about this company, that doesn’t even have a board, and many have questioned its capacity to acquire an asset as big as Telecel, considering the government doesn’t have the cash to do so. The Minister has said that Telecel shareholders from both camps have agreed to sell to government but there has been no statement from the company on this matter. Mandiwanzira rose through the ranks of AAG, and I no doubt believe he is trying to test the waters, by making these unconfirmed statements. That is the AAG way. As President of AAG, Mandiwanzira also demanded that they be given 9% shareholding, but his efforts fell on deaf ears and now he is out to finish off what he started. It has since emerged an advisory team is currently being set up to best advise the Minister how best Zarnet can proceed with the Telecel transaction. Many believe Mandiwanzira will tap a private equity firm that has links to his AB Communications. He believes that if he bulldozes Telecel, he will be able to control the narrative through his 3 radio stations, and now would have the financial means, to back VP Mnangangwa in the succession race, in hopes that he succeeds him after. He has begun to build base around himself, and many eyebrows were raised when he recently introduced the First Lady & Vice President at the just ended birthday party for Amai Mugabe at their Borrowdale Brooke residence considering that many senior government were present but ultimately overlooked.

The youthful Minister must be watched closely. This is a case of Supa wanting to be Superman. And even though the ending is not clear, he is already suiting up for what should be a bruising battle ahead. Now watch him put on his cape.

Ronald Sibanda is a political and social commentator passionate about the development of Zimbabwe.

6 Replies to “Supa: ‘the Crook’ Behind Telecel Takeover”

  1. no wonder why he kicked potraz out of the game for overspending kkkkkkk not coruption

  2. ‘ ..meteoric rise …? In Zanu … in a Zanu-PF government? A young man?
    My big toe …!!

  3. Supa let me warn you. Kumusha kwauri uku dzikama ubvunze vamwe kuti nhanzva inoitwa sei? Mabhurugwa anobvaruka aya. Ndapedza.

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