News / National
Multi-million scam rocks NetOne
21 Mar 2016 at 20:18hrs | Views
The NetOne board says the mobile company has lost millions of dollars owing to a weak finance team, prompting a forensic audit to clean up the system.
State owned mobile operator has been rocked by financial scandal which has seen the Managing Director, Mr Reward Kangai being put on forced leave to pave way for the forensic audit.
A number of irregularities have also been unearthed in the procurement department.
Briefing the media in Harare, NetOne Board Chairman, Mr Alex Marufu said a weak finance team has prejudiced the organisation of millions of dollars with one company owned by the previous management US$11 million.
"NetOne is owed US$46 million and US$11 million is by a company which was owned by the previous management team. These are some of the issues that led to the CEO being put on forced leave and some heads will roll depending on the information being obtained," said Mr Marufu.
"The forensic audit report will focus on improving the internal control systems and procedures for procurement, collection of debtors, airtime distribution, payment of salaries and allowances, acquisition and management of base station sites.
"This is not a person witch-hunt and we want to stay away from that. We want to account for the public funds and ensure that it was used properly for the benefit of the shareholder. The deal with China International Telecommunication Construction Corporation has not been presented to the board despite a sustained campaign from interested individuals to have the contract signed. The Megawatt deal with NetOne is above board," Mr Marufu added.
The board cited the transactions between the company and a company named Bopela, which is alleged to have benefitted from a deal to sell sim-cards to 50 000 people.
An advance of US$80 000 was paid but only 3000 sim-cards were delivered.
The Eco-friendly Towers tender is believed to have been awarded without following proper procurement procedures.
State owned mobile operator has been rocked by financial scandal which has seen the Managing Director, Mr Reward Kangai being put on forced leave to pave way for the forensic audit.
A number of irregularities have also been unearthed in the procurement department.
Briefing the media in Harare, NetOne Board Chairman, Mr Alex Marufu said a weak finance team has prejudiced the organisation of millions of dollars with one company owned by the previous management US$11 million.
"NetOne is owed US$46 million and US$11 million is by a company which was owned by the previous management team. These are some of the issues that led to the CEO being put on forced leave and some heads will roll depending on the information being obtained," said Mr Marufu.
"This is not a person witch-hunt and we want to stay away from that. We want to account for the public funds and ensure that it was used properly for the benefit of the shareholder. The deal with China International Telecommunication Construction Corporation has not been presented to the board despite a sustained campaign from interested individuals to have the contract signed. The Megawatt deal with NetOne is above board," Mr Marufu added.
The board cited the transactions between the company and a company named Bopela, which is alleged to have benefitted from a deal to sell sim-cards to 50 000 people.
An advance of US$80 000 was paid but only 3000 sim-cards were delivered.
The Eco-friendly Towers tender is believed to have been awarded without following proper procurement procedures.
Source - zbc
