News / National
Kangai loses succession battle
27 May 2017 at 09:03hrs | Views
FORMER NetOne chief executive Reward Kangai this week suffered a major setback after the High Court ruled that his application to stop the recruitment of his successor following his unceremonious departure from the mobile phone operator last year was not urgent.
Kangai was sent on forced leave in March 2016 after the company's board sanctioned a forensic audit into the affairs of the State-owned mobile phone operator.
He was suspended without pay and benefits last October after external auditors PriceWaterhouseCoopers completed a board-sanctioned probe into the goings-on at the mobile phone operator.
Justice Priscillah Chigumba on Wednesday dismissed the application by Kangai who was also challenging the legality of the termination of his employment contract.
She ruled that Kangai had other remedies which he was at liberty to pursue, even as a matter of urgency than the route he took in the present case.
"The applicant has told us that he has an alternative remedy, which he has already utilised," said Justice Chigumba. "He has a pending application for a declaratory order which may be heard at any moment."
In case the cited remedy was rendered inadequate by the subsequent advertisements for the filling of his post, it was the court's considered view that there were other remedies at Kangai's disposal.
The court also did not accept that the withdrawal of the disciplinary proceedings could only be construed as a denial of his opportunity to clear his name.
"There are common law remedies at his disposal such as claims for damages for defamation," said Justice Chigumba. "We do not accept it as trite that if respondent succeeds in replacing the applicant this will necessarily constitute irreparable harm."
Kangai, the judge said, had the right to apply for reinstament in the appropriate forum of his choice.
Through his lawyer, Mr Tendai Biti, Kangai had argued that he was legally NetOne's chief executive despite being forced out after NetOne decided to buy him out of his contract which was due to expire next month.
The closing date for the NetOne vacancy notice was May 5.
In October last year, the NetOne board led by immediate past chairman Alex Marufu withdrew charges against Kangai but extended his forced leave to the end of that month.
But court documents showed that his contract was terminated on October 12 on three months' notice which ran from November 1 to January 31. He was paid out cash in lieu of notice.
Following the termination of the contract, Kangai's lawyers then wrote to the board challenging the termination of the contract and the disciplinary proceedings that were initiated by the company.
Among the scandals unearthed at NetOne last year was the engagement of a local contractor, Bopela Group led by one Agrippa Masiyakurima, to undertake a base station project without a contract amid disclosures that the contractor erected a base station at his wife's house in the capital without the company's approval.
This was first revealed in the first draft of an audit report on NetOne titled "Provision of Comprehensive Forensic Investigation Services to NetOne Cellular Services" compiled by PriceWaterhouseCoopers Zimbabwe (PwC) on behalf of the Auditor-General.
This audit report also noted that the company corruptly, with the blessing of Kangai, paid rental fees to Masiyakurima's wife in advance, in clear violation of a lease agreement.
The report also noted through a review of payments made to the Bopela Group in the period under investigation that no purchase order exceeded US$300 000.
The report further noted that in July 2015, Bopela Group secured an US$80 000 loan from NetOne to construct base station foundations, but the loan was repaid by a third party with no interest.
The auditors, the report further stated, obtained a Domestic/Loan Remittance Application form from Standard Chartered Bank Zimbabwe dated August 14 2015 with the loan repayment details showing that the repayment was made from Coram Mashuta's account.
The US$80 000 was paid into NetOne account 02400973700 held with Stanbic Bank. Messrs Sinyoro and Partners argued the matter for NetOne.
Kangai was sent on forced leave in March 2016 after the company's board sanctioned a forensic audit into the affairs of the State-owned mobile phone operator.
He was suspended without pay and benefits last October after external auditors PriceWaterhouseCoopers completed a board-sanctioned probe into the goings-on at the mobile phone operator.
Justice Priscillah Chigumba on Wednesday dismissed the application by Kangai who was also challenging the legality of the termination of his employment contract.
She ruled that Kangai had other remedies which he was at liberty to pursue, even as a matter of urgency than the route he took in the present case.
"The applicant has told us that he has an alternative remedy, which he has already utilised," said Justice Chigumba. "He has a pending application for a declaratory order which may be heard at any moment."
In case the cited remedy was rendered inadequate by the subsequent advertisements for the filling of his post, it was the court's considered view that there were other remedies at Kangai's disposal.
The court also did not accept that the withdrawal of the disciplinary proceedings could only be construed as a denial of his opportunity to clear his name.
"There are common law remedies at his disposal such as claims for damages for defamation," said Justice Chigumba. "We do not accept it as trite that if respondent succeeds in replacing the applicant this will necessarily constitute irreparable harm."
Kangai, the judge said, had the right to apply for reinstament in the appropriate forum of his choice.
Through his lawyer, Mr Tendai Biti, Kangai had argued that he was legally NetOne's chief executive despite being forced out after NetOne decided to buy him out of his contract which was due to expire next month.
In October last year, the NetOne board led by immediate past chairman Alex Marufu withdrew charges against Kangai but extended his forced leave to the end of that month.
But court documents showed that his contract was terminated on October 12 on three months' notice which ran from November 1 to January 31. He was paid out cash in lieu of notice.
Following the termination of the contract, Kangai's lawyers then wrote to the board challenging the termination of the contract and the disciplinary proceedings that were initiated by the company.
Among the scandals unearthed at NetOne last year was the engagement of a local contractor, Bopela Group led by one Agrippa Masiyakurima, to undertake a base station project without a contract amid disclosures that the contractor erected a base station at his wife's house in the capital without the company's approval.
This was first revealed in the first draft of an audit report on NetOne titled "Provision of Comprehensive Forensic Investigation Services to NetOne Cellular Services" compiled by PriceWaterhouseCoopers Zimbabwe (PwC) on behalf of the Auditor-General.
This audit report also noted that the company corruptly, with the blessing of Kangai, paid rental fees to Masiyakurima's wife in advance, in clear violation of a lease agreement.
The report also noted through a review of payments made to the Bopela Group in the period under investigation that no purchase order exceeded US$300 000.
The report further noted that in July 2015, Bopela Group secured an US$80 000 loan from NetOne to construct base station foundations, but the loan was repaid by a third party with no interest.
The auditors, the report further stated, obtained a Domestic/Loan Remittance Application form from Standard Chartered Bank Zimbabwe dated August 14 2015 with the loan repayment details showing that the repayment was made from Coram Mashuta's account.
The US$80 000 was paid into NetOne account 02400973700 held with Stanbic Bank. Messrs Sinyoro and Partners argued the matter for NetOne.
Source - the herald
