The Zimbabwe Anti Corruption Commission is reportedly looking into Non-Executive Director Rangarirai Mathias Mavhunga. The inquiry stems from Mr Mavhunga not disclosing his personal interest to his principal in a transaction between FMC Holdings and NetOne.
The case facing Mr Mavhunga
In a report by the Business Times, information showed that in 2019 NetOne and FMC had an agreement for Value Added Services. Without the disclosure of his personal interest in FMC, The Zimbabwe Republic Police Anti-Corruption Unit opened a case against Mr Mavhunga outlined in Section 173 (1) (a)(ii) of the Criminal Law and Codification and Reform Act under Harare Central 57/05/2020.
“When the agreement was entered between the two parties, the accused did not disclose to NetOne Cellular board his involvement in FMC which might have favoured FMC to obtain the facility in contravention of Section
173 (1) (a) (ii) of the Criminal Law and Codification and Reform Act”.
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This isn’t anything new
- Muchenje’s domestic workers and security guards were on the NetOne payroll which wasn’t agreed in his contract;
- The executive leased himself a house in Borrowdale for a fraction of its market value;
- Awarded himself “a disproportionate bonus” of ZW$510 000 in December 2019;
- In November of the same year, Muchenje is said to have awarded himself and his wife ZW$895 000 as a holiday allowance – Muchenje is reportedly eligible for two holidays but his wife isn’t covered;
- Muchenje and Chief Finance Officer at NetOne Tinashe Severa (who was also suspended alongside Muchenje) are accused of prejudicing the MNO of US$2.24m after unlawfully signing an interconnect contract with Bankai International Pvt Ltd – “In terms of this agreement Bankai purchased nine million minutes for US$1 million contrary to the company’s ruling rate of 36 cents per minute. Further, the agreement contravened schedule five of SI (Statutory Instrument) 163 of 2008 (Postal and Telecommunications (international Termination rates) Amendment Regulations 2008. As a result, the company was prejudiced US$2 240 000”;
- On two occasions in June & August, Muchenje is said to have approved purchase of fuel worth ZW$7.6m and ZW$1.2m without seeking board approval. The purchase was also made from a company that wasn’t ZERA approved and ended up buying the fuel at a much higher price than the pump price at the time;
- Muchenje also allegedly leased company property for ZW$1 000/month when its actual value was US$2 500-$3 500/month depending on whether or not the property was furnished;
- Muchenje allegedly bought household goods and appliances worth ZW$623 587 without board approval;
Mr Muchenje and associates were released on bail.
More to follow as further details about Mr Mavhunga’s Case become available.