Loss making NetOne to declare a dividend?

The state-owned mobile operator NetOne is eyeing to declare a dividend by the end of the year despite making a US$3 million loss last year which is inconsistent with the US$218 million investment in network expansion.

The new policy thrust by the mobile operator was revealed to the Parliamentary Portfolio Committee on Youth, Indigenisation and Economic Empowerment chaired by Gokwe Nembudziya legislator Justice Mayor Wadyajena at the company's head office in Harare.

Briefing members of the portfolio committee, NetOne acting chief executive officer Mr Brian Mutandiro says the company made a loss of US$3 million last year and promised that the new business model adopted will turn the firm to profitability this year.

Mr Mutandiro further noted that there were a number of mistakes done by the previous management, hence the decision by the board to send them home and will not be repeated in future.

NetOne has been under the spotlight owing to poor corporate governance structures and awarding of tenders to companies without going to tender, thereby losing millions of dollars.