It has been reported that NetOne has dismissed its CEO Reward Kangai after a presented forensic report uncovered gross corporate misconduct on the part of the CEO.
Mr. Kangai, who was serving a paid suspension on allegations of corruption, was dismissed from his position as CEO of NetOne in board resolution passed on Friday 16th September. The board had convened to be presented findings on the forensic report conducted by the Office of the Auditor General.
According to the Sunday Mail, the report unearthed the following:
- Mr Kangai was using FirstTel Cellular to market the parastatal’s products. FirstTel’s co-owners include NetOne executives Mr Lyndon Nkomo, Ms Memory Moyo, Mr Matavire (now- late) and Mr Godfrey Tarupuhwa (former finance director). FirstTel received US$11 million but did not provide the stated services, and Mr Kangai later tried to convince the NetOne board not to pursue the matter.
- Mr Kangai and his management team invested millions into OneWallet, NetOne’s mobile money platform, although evidence showed this was unprofitable. The venture did not realize much revenue due to poor marketing, a non-existent agent network and system inefficiencies.
- NetOne entered into a US$3,7 million deal with Bopela Group (Pvt) without following tender procedures. Bopela is owned by South Africa-based Zimbabwean businessman, Mr Agrippa Masiyakurima.
- Mr. Kangai and his management team awarded themselves hefty allowances running into millions of dollars without board approval despite clear evidence that the company was not operating profitably.
Mr. Kangai’s future hangs in the balance as he could be arrested on charges of corruption based on the findings of the forensic report. The former CEO’s situation is not helped by his fractured relationships with the Minister of ICT Supa Mandiwanzira and board chairman Alex Marufu.
Mr Kangai had previously accused the Minister of ICT of corrupt involvement in the operations of the mobile network in a heated exchange that took place at the Parliamentary Portfolio Committee of ICT.
Last year, the Minister of ICT vowed to shake up the management at NetOne in a bid to resuscitate the ailing Mobile Operator.
In keeping to his word, the CEO has now been sacked and we expect more sackings to take place over the next few weeks as NetOne and the Ministry take in and act on findings of the forensic report. We suspect the forensic report to hold damning evidence of corruption and mismanagement at the operator.