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Rubiem CEO, Magaya, speaks on PowerTel consultancy controversy

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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to one of the shortest board chairing tenures recently after he was appointed to the ZBC board and had the appointment withdrawn within 24 hours. Withdrawn because of the PowerTel issue.

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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:

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PRESS STATEMENT By Dr. Dennis Magaya

  1. 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.
  2. I wish the ZBC board all the success in their endeavors to turn around our national broadcaster into a viable institution.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. I am a professional and always endeavor to remain out of matters of political inclination.
  9. 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.
  10. 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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37 thoughts on “Rubiem CEO, Magaya, speaks on PowerTel consultancy controversy

    1. Salute Dennis Magaya. Salute Gumbura. Salute the Devil. Salute
      corruption. Salute robbery. Salute rotten apples. Salute the nefarious community. Salute
      yourself.

    2. The fact that the email address (careers@rubiem.co.za) is not working clearly shows that RubieM and Dennis Magaya are fake and willing to rob your time and hard earned cash. Beware of human trafficking my friend.

    3. You see this is a fake email and this shows RubieM and its notorious owner Magaya are fake. They want to rob you of your precious time and money. Stop that my friend. Beware of human trafficking and endless abuse my dear friend.

  1. Thank you Dr Magaya for shading more light. i respect you and your work. the good work done is being painted black but i am sure the paint wont stick

    1. Eish… inhamo yekushaya zvekurespector here, this guy did what any average business school freshman would have done. hapana zvitsva apa

    2. Garidzai ari kuzama kugadziridza zvakatadzwa kudhara. Murume uyu Magaya (Dennis) kwete Magaya muporofita akaba zvikuru uye zvinosemesa. Yadeuka yadeuka mvura yeguchu haiorerwi. Handinyore kuvhiya chidembo ukasanhuwirwa. Chavhiyiwa naDennis iwe Garidzai wozama kukanda maperfumes. Powertel iri kuchema. Africom iri kuchema. Netone yagara iri kuchema. Pamusana pemabasa aMagaya nevamwe vake. Abatwa abatwa. Tomupawo nguva yake Dennis yekureurura nekudzoka kunashe. Dzoka panashe Dennis. Dennis Dennis Magaya gaya ndoda kuti umbopagaya. Tatenda.

  2. So, the question is, “Laws of the land and Annual reports” considered, did you have independence/conflict of interest issues? Morally as “..a proud Zimbabwean who has carried the national flag high…” did you feel a twinge in your conscience? Did a little voice tell you that you were playing in a grey area within the confines of the law or perhaps even breaking some laws?

  3. Whose responsibility is it to meet the minister over your issue? You or your employers and client (powertel management and board). I understand you proposed a strategy and your company one the tender to implement the strategy when that was deemed inconsistent with tender laws you then convert the tender to an employment contract. That is what is being indicated as unpallatable and an act of corruption, can you clarify matters on that in a follow up press statement…too

  4. still doesnt matter the point is your appointment was spoiled so even if you were to give 400% profit you still got the job the wrong way at an over priced premimum considering i mean come on a bonus every month you were corrupt .

    1. Salute Dennis Magaya. Salute Gumbura. Salute the Devil. Salute corruption. Salute robbery. Salute the nefarious community. Salute yourself.

  5. Nonsense, this guy got a job he was not suppose to get, maybe if the job had been given to someone else the results he is showing off here might have been twice better.
    Never in business can you have the designer to be the implementer, how will red flags be raised if there are flaws in the strategy, obviously you were overlooking your flaws in design thereby prejudicing the project objectives.
    Professionalism comes with values and ethics which you ignored for a quick buck, now guess what, the saying that says “A good name is better than riches” makes sense. You are now tarnished goods.

    1. If there is one to apologise maybe it should be Powertel not Dr Magaya. if you read and have your facts correctly, you are just attacking a victim of Zim Politics. if you read nicely you will see that Mavhaire is now clashing with ZESA again. i am sure in Zimbabawe there is quite a number of people who should apologise to the nation not this Magaya guy

      1. Garidzai you are now a problem in this forum. I am perplexed you are vehemently defending this day light robbery. May be you are Dennis Magaya or his wife or close friend masquerading as Garidzai. You want a victim to apologize to her rapist? I am really flabbergasted and I am wondering if you have normal five senses. Dennis Magaya is a social misfit who is costing the world immensely.

  6. Most people say so and so is corrupt, a thief, a liar etc. Reminds me of the woman caught in adultery…kkkk (quite an example). He/she that is without any defect, let they be the first to denounce Dr. Magaya. I do not stand to judge him. I just wonder if you were with your company, what would you do (because this criticism may simply be out of envy)? When you sell say your second hand mobile phone or those imported stuff, do you charge fairly? Do you tell your prospective clients the whole truth?

  7. Here is a notorious criminal desperately trying to get out of the troubles of his own making. If I were this strategist of white collar crimes I should have apologized to the nation to show professionalism. We know his murky and corrupt deals in some companies notably Africom, Netone , Telone and the most recently crooked Powertel. This man and his accomplices should be apprehended and incarcerated.

      1. Garidzai we are not talking about Valley Technologies in this context. Maybe Valley Technologies was robbed by other robbers who were in the class of Dennis Magaya and might have been given more time to loot from the “virgin” Valley Technologies as compared to the time of Dennis Magaya at Africom. You may say he did this and that at Powertel but even the serial rapist Gumbura can say he improved the welfare of his church by helping orphaned girls with money and clothes. In return of what? The truth remains that Dennis Magaya is a notorious white collar crime looter who is waiting for the next victim.

  8. Chifamba awarded a controversial consultant contract to the disreputable
    RubieM in return for bribes. It was a cabon copy of Africom strategy in
    which the heartless, irrational Dennis Magaya robbed Africom in 2010.
    Through his cheap doctorate from Wits and other sagacious marketing
    gimmicks Magaya and his nefarious team is very much capable of selling
    his theoretical strategies to desperate companies such as Africom,
    Telone and Netone. To exacerbate the case such fat cats like Dennis
    Magaya are very notorious of evading taxes and they know how to immerse
    themselves in political parties to consolidate their positions. I think
    if Africom was Powertel Kwanai Kashangura (the Africom CEO) could have
    gone the same way. He formed an evil consortium with the greedy Dennis
    Magaya and other influential people to milk money from Africom leaving
    it a very emaciated organization. It is high time we have systems in
    Zimbabwe that scan a person or company for corporate governance before
    engaging in mutual contracts. This exposure has inevitably left a dent
    on Magaya’s reputation though he can safely say he robbed bloody money
    enough to look after him for the remainder of his life. Apart from these
    local cases Magaya and his looting team have been embroiled in a myriad
    of cases in some countries in which they were accused of inflating
    consultancy fees and operating illegally. This link is just an example
    http://www.swazilive.com/Swaziland_News/Swaziland_News_Stories.asp?News_id=1559
    of his atrocious deals in other countries. If the hypothesis which says
    “that there is a positive relationship between corruption and adultery
    in men” will be found true no wonder why Dennis Magaya loves prostitutes

    and small houses eg Rudo Mudavanhu. The Gumbura look-alike Magaya and his evil team should be
    apprehended and incarcerated for the rest of their useless lives.

  9. You guys you surprise me. These are diversionary tactics of the regime for failing to pay civil servants yet we claimed to have lots of diamond that even the west wanted to grab. And the proceeds were all looted such that Zimbabwe has failed to relocate the Tokwe – Mukosi victims. Shame shame on you who are responsible, you go for the small fish and leaving the big sharks!

    And that Swazi article you keep referring to is nonsense. Even Huawei Technologies, a world know telecoms equipment vendor, was also a “ghost” supplier of SPTC!

    Those Powertel results don’t lie and to say anyone else could have done better is not a fact. The facts are there at Powertel.

    1. A snake is a snake no matter what colour. Dennis Magaya might be a small snake among other gigantic snakes but the fact is Powertel is a victim of Dennis stealing tactics. Other snakes will soon be identified while Dennis is counting his losses of hoodwinking and stealing from desperate companies.

  10. Magaya Magaya, points 6 expansions are smelling badly.Who audited those accounts when backouts are the order of the day and we generating half our energy needs, ZESA Holdings is extremely and technically insolvent.If you were worth your salt you would have engaged this business that survives on voodoo operations. Your brand was and is severely destroyed if you were a good professional you wouldn’t have allowed yourself kurara mukanwa nezamu recorruption, You are now trying to defend the indefensible and its now water under the bridge.

  11. It is important for people to realise some fundamental issues around this PowerTel Issue.
    1. Dr. Magaya is a business and he proposed a strategy that was deemed good by the board and they felt he needed to implement it.
    2. It was not Magaya who appointed himself, surely if the board believed in him, and asked him to implement, he gladly accepted. Who would n’t? Its an honor for a board to have confidence in you like that.
    3. A Board is not made of one person and when an entire board agrees and authorises, surely its unfair to then say the person given the business was corrupt.
    4. If Over and above the board, the minister was in agreement, surely the issue here cannot be taken on the Dr.
    5. It is unfortunate that those without political muscle will be made scapegoats and be dragged by all. Dr Magaya appears not to be politically aligned and has now become the punch bag for everyone. It is quite unfortunate.
    6. The board has not said it erred in engaging him, or have they said they were arm-twisted by him. Now why blame him if the people who appointed him are acknowledging and have stated also why they believed in what they did.
    7. We do not all need to be politicians to do business in Zimbabwe. Neither should people deliberately focus on scandalising some people’s names and paint them black before the whole nation, deliberately leaving important details, just because the person is not aligned to some politicians.
    8. I say hands off Dr. Magaya. He is a gentleman, who even chooses polite words in trying to tell his side of the story, under such terrible conditions.
    I wish to invite all who care about fairness, to shun this deliberate use of Dr. Magaya’s name ignoring the facts about the performance he brought to PowerTel. For those who do not know the difference between ZESA and PowerTel, please update yourselves before expecting Dr. Magaya to solve the ZESA power and billing issues.

    1. It appears you are saying this Dennis Magaya is immune to blame and prosecution. He is a supernatural human being who is invincible and very powerful. Ladies and gentlemen corruption is corruption and this Magaya wronged Powertel among other companies. He wronged the nation at large. Some corrupt people like him are defending and sugar-coating his evil deeds that he perpetrated against Powertel. There is no smoke without fire and this Magaya did something nakedly evil to milk money from Powertel. Whatever can be said in defence of Magaya and his accomplices can not justify the devastating effects of Magaya’s consultancy on Powertel. Politicians are necessary in our lives and bad as they are do not hate them when they find you on the wrong side of the Law. Magaya is not a victim of politics but a victim of robbery and problems of his own making. Let us exonerate politics in this unambiguous white collar crime in which Magaya deliberately participated. What kind of a gentleman who steals money (from his own country). As of performance I will give you an analogy that suits Magaya’s theft at Powertel- You have 5 goats and someone seemingly benevolent brings you 8 goats to make 14 goats that you own. Sooner or later that person steals 13 goats from you. How many goats are you left with? I will be back soon. Regards WatchTower.

    2. Hatisati tapedza naDennis Magaya uyu. Kwasara kuongorora mabooks ake nemaitiro ake kucompany yake kuNewlands. Tiri kuuya kuNewlands ikoko sehurumende tinozvatinodako.

    3. Hatisati tapedza naDennis Magaya uyu. Kwasara kuongorora mabooks ake
      nemaitiro ake kucompany yake kuNewlands. Gadzirira gweta Dennis. Tiri kuuya kuNewlands ikoko
      sehurumende tinezvatinodako.

  12. the man cannot even defend his actions properly these points further prove that he is complicit with the board as for track record i beg to differ there is no success there .if it was your company he consulted for or you were a major shareholder i tell u most of you would want this guy to hang kikikiki

    1. Its high time we came to a stage where we don’t salute or praise men of great disrepute, men without honour, men who are looking to capitalise on gross inefficiencies found within the controls of companies that are meant to be delivering quality services whilst returning profits to their investors. If one still believes this man is a saint, then one needs to take a look at their value system.

  13. where are the recharge cards?? Name the 16 cities as Zimbabwe has 5 cities?? You increased the shops to 12 or 12 times??

  14. The question then is what is the CEO and management at Powertel doing, if an external consultant is doing what shareholders pay this team to do? Perhaps the current team should be fired and this guy hired on a substantive basis, then!

  15. “If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck.” use that simple test and substitute “fraud” for “duck”, i think you will come to the same conclusion as i did. That is, this guy Magaya can only be a fraudulent duck.
    Hope the industry in Zimbabwe and surrounding countries will realize this and cut him out of any future deals. Remember there is no smoke without fire and he has really done himself no favors here. He has stuffed up his reputation and integrity. Remember the only way to be trusted is to act in a trustworthy manner, which he obviously has not done from the outset. Goodbye Mr. Magaya.

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