The Zimbabwe government has cancelled a US$400 million deal with the Diaspora Infrastructure Development Group(DIDG).

DIDG allegedly failed to provide proof of payments under the agreed contractual deadlines.

The lucrative tender was targetted towards the resuscitation of the National Railways of Zimbabwe (NRZ).

Reports state that DIDG created legal complications after dis-connecting with Transnet, South Africa’s publicly owned rail operator which was initially part of the deal.

In a statement, Secretary For Information, Publicity and Broadcasting Services Nick Mangwana said government was forced to issue a new tender after DIDG failed to abide by the legal demands of the deal.

“DIDG presented a funding structure based on funds sourced internationally, which excluded Transnet.

The exclusion of Transnet had a legal impact on the tender which had been awarded to them as a consortium.

“In light of the foregoing, the government took a position to issue a new tender,” said Mangwana.

The tender was awarded in August 2017, the developments that followed after have forced government to issue a new tender.