As you may know, Pan African telecoms consultancy company, Rubiem, are in the middle of a storm regarding a job they have been working on at PowerTel for the past 2 years. We will spare you the details but you can read about them here. The CEO, Dennis Magaya, was also subjected to one of the shortest board chairing tenures recently after he was appointed to the ZBC board and had the appointment withdrawn within 24 hours. Withdrawn because of the PowerTel issue.
Rubiem and Magaya had so far chose to remain quiet the issue, we’re guessing, intending to let the political storm blow over so they could get back to work. But a Herald headline on Monday stormed on: Magaya’s honeymoon over: Mavhaire. We’re guessing this is the point Magaya and team decided enough was enough, they’d tell their side of the story.
Here’s the full statement Magaya has in the Herald today:
PRESS STATEMENT By Dr. Dennis Magaya
- Firstly, let me express my gratitude to the Minister of Information, Media and Broadcasting Services, Professor Jonathan Moyo, his Deputy Supa Mandiwanzira and the permanent secretary Mr George Charamba for recognizing my talent and experience in ICT and considering me for the ZBC Board chairman post.
- I wish the ZBC board all the success in their endeavors to turn around our national broadcaster into a viable institution.
- I am sure ZBC will continue to tell the Zimbabwean story to the world with pride anchored on the country’s liberation history and to contribute to a future of transparency and progress.
- Secondly, turning to PowerTel matters, I was engaged on the basis of my ICT professional expertise and experience in business transformation strategies and in terms of a contract that governs the employment relationship and determination thereof.
- In 2011, PowerTel made a loss and a new strategy was required which I crafted. The strategic objective was to transform PowerTel to a top communications company in Zimbabwe.
- Since my engagement in 2012, the following published achievements were made:a. The PowerTel 2012 Annual Report and Audited Financial Results show that
i. Profit After Tax grew from a loss of -$162,507 in 2011 to a profit of US$2.2Million in 2012.
ii. Profit Before Tax grew by 623% from US$448,537 in 2011 to US$3,119,188 in 2012
iii. Revenue grew by 23% from US$16.38 million in 2011 to US$20.25 Million in 2012 -PowerTel became one of the most profitable State Owned Enterprise.
iv. Debt to equity ratio was 86% an improvement of 92% from prior year
v. In 2012, PowerTel supplied 40% of Zimbabwe’s Internet bandwidth up from 25% in 2011
vi. PowerTel was awarded first position in Best Marketing Effort in Parastatal category and came Second runner-up in ICT Category in the Marketers Association of Zimbabwe (MAZ) Super Brand Awards in 2012b. The 2013 Annual Report is not published yet but we expect the profitable growth trend to continuec. The following Projects were successfully implemented within 15 months and I am sure PowerTel customers will soon enjoy the full benefits after commercial launch
i. A new state-of-the-art converged Billing and Customer Care system
ii. Increased mobile data coverage from 2 cities in 2011 to 16 cities in 2013
iii. A new world-class and high capacity switch and a network operations center
iv. A new call center system
v. We increased the number of shops by 12 times. The flagship shop is at Joina city in Harare
vi. We increased the number of products by 8 times compared to 2011
vii. We changed the brand positioning including the corporate logo, pay-off line and colours.d. The full impact in revenue upswing for these new projects is in the making since aggressive monetization strategies will be pursued in 2014 onwards. As with complex business transformation projects, there are some areas that are lagging behind and we are busy fixing theme. We significantly optimized costs in both operational expenses and capital expenditure.
- I had preliminary contacts with the Minister of Energy, Hon. Dzikamai Mavhaire in an attempt to give him my perspective on my PowerTel engagements and achievements and he promised we would meet soonest to discuss.
- I am a professional and always endeavor to remain out of matters of political inclination.
- I want to assure my fellow Zimbabweans, the authorities concerned, the Rubiem Technologies employees (Rubiem Technologies is a Pan African consultancy company of which I am CEO) and partners that all my work is done with integrity and always within the laws of the land.
- I remain a proud Zimbabwean who has carried the national flag high through honest and credible work in the region.The results and facts on the ground including the PowerTel 2012 annual report speak for themselves.
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