eBusiness Weekly
Africa Moyo
High profile officials suspected of corruption are in deep trouble as the government has stepped up a blitz on sleaze in its drive towards turning Zimbabwe into an upper middle income economy by 2030.
President Mnangagwa announced in his inauguration speech on November 24 last year that corruption would be fiercely tackled under his administration to help attract foreign investment. Already, high profile figures such as former ministers Engineer Walter Mzembi (Tourism), Dr Ignatious Chombo (Finance), Walter Chidhakwa (Mines), Dr Samuel Undenge (Energy) and Saviour Kasukuwere (Local Government), have been dragged before the courts over various corruption allegations.
Turning up the heat
Further, several head honchos of top parastatals such ZESA Holdings CEO Josh Chifamba, finance director Thokozani Dhliwayo
and Zimbabwe Electricity Transmission and Distribution Company (ZETDC) managing director
Julian Chinembiri, were arrested recently over abuse of office allegations. Allied Timbers Zimbabwe CEO Daniel Sithole also appeared in court on Wednesday after his arrest for allegedly defeating procurement procedures at the parastatal.
Critically, former Zimbabwe National Roads Administration (Zinara) acting CEO Moses Juma, was jailed for an effective two years on Monday this week, again for abusing public office.
Towards Vision 2030
Secretary responsible for State Enterprises Reform, Corporate Governance and Procurement in the Office of the President and Cabinet, Willard Manungo, told Business Weekly yesterday that the battle against all forms of leakages that threaten the attainment of ‘Vision 2030’ will be descended upon.
“The President’s thrust is really on movement towards an upper middle income economy by 2030, and for us to be able to do that, all sectors, all entities will need to play their part in terms of ensuring that we maximise on the State resources that we have,” said Manungo.
“So the issues of corporate governance take centre stage in terms of utilising State resources. Things like corruption and those other things that represent leakages that undermine H.E (His Excellency)’s quest for an upper middle income economy by 2030, will not be tolerated. The thrust is now on production, efficiency and maximising on the limited State resources. So there is zero tolerance towards leakages reflected in corruption and the absence of corporate governance breeds such leakages so the stance is really to plug all potential leakages and the insistence on ensuring that corporate governance centre stage.”
Courts heed corruption fight call
The courts appear to be heeding the call by the executive for ruthlessness against all forms of graft, a paradigm shift from yesteryears when alleged criminals would “get away with murder”.
In case that led to the jailing of Juma, who was first arrested in 2016 before his release from Avondale Police Station after the intervention of former Vice President Phelekezela Mphoko, the prosecution team implored the court for a deterrent punishment.
Said Chris Mutangadura who represented the prosecution: “Your Worship, the new dispensation is now viewing corruption as a cancer that needs to be exorcised from the society and that the penalty must deter would be offenders.
“A clear message has to be sent out that crime does not pay.”
Magistrate Hoseah Mujaya, conceded that it was time corruption was to be treated with the seriousness it deserves.
Juma was sentenced to 30 months behind bars before six months were suspended on condition of good behaviour. Juma was convicted after a
full trial, in which it was proven that sometime in 2014, he had a tax obligation of $15 418 133, 61
with the Zimbabwe Revenue Authority. This resulted in Zimra in garnishing $5 714 587, 25, leaving a balance of $9 703 546,36.
Parastatal boards also flex muscles
As Government begins purging parastatal boards that are deemed ineffective to allow for competent officials to preside over them, some boards are also fighting alleged corrupt elements.
The Hwange Colliery Company Limited (HCCL) board has suspended two top officials at the coal miner, acting managing director Engineer Shepherd Manamike and finance and administration boss, Tawanda Marapira over “unethical business practices”.
This ranks as probably a first for a parastatal board to flag such issues given that in the past, board members would gang up with executives to plunder companies without restraint.
In 2016, 38 out of 93 audited State-owned firms reported a combined $270 million loss due to weak corporate governance practices and ineffective control mechanisms.
In the HCCL case, acting board chairperson Juliana Muskwe said lax management by the acting MD and finance boss led to the company defaulting on its Scheme of Arrangement entered into with creditors.
This saw the company plunging into $7,6 million arrears.
HCCL, which owes various creditors $352 million, entered into a Scheme of Arrangement with them on May 10 last year, under which employees would be paid monthly. Employees are owed $4,6 million from the last two months they were not paid while payment of interest on Class A debentures has fallen behind by $3 million.
HCCL is in arrears despite accumulating a coal stockpile of about 345 000 tonnes worth $13 million, which is about 1,5 months coal supply to the Zimbabwe Power Company.
Other parastatals such as Zisco, Air Zimbabwe, Cold Storage Commission (CSC), and Zupco, are stewing in debt of up to $2 billion.
