Latest News Editor's Choice

News / National

Chinamasa appointment to Air Zimbabwe board 'dubious'

by ZimLive
11 Jun 2019 at 07:44hrs | Views
President Emmerson Mnangagwa has named former finance minister Patrick Chinamasa as the new chairman of the Air Zimbabwe board – but the validity of the appointment was immediately thrown into question.

Air Zimbabwe, which is saddled with debts of over US$300 million, was placed under administration in October last year, effectively divesting the board of all control.

But following a meeting of the Zanu-PF politburo on Monday, Mnangagwa announced the surprise appointment which was immediately questioned by lawyers.

Lawyer Alex Magaisa said: "In October 2018, the government issued General Notice 758/2018 under which Air Zimbabwe was placed under administration. Control of the company was given to the administrator, Reggie Saruchera.

"There has been no indication prior to the announcement of Chinamasa as board chairman that Air Zimbabwe is no longer u see administration or that the primary law which vests all powers over the company in the administrator has been amended to accommodate a board.

"All this suggests that the so-called appointment of Chinamasa as board chairman of Air Zimbabwe is on dubious and shaky legal grounds. Why, in any event, from a corporate governance perspective, would government create competing authorities – a board and an administrator?"

Obey Shava, a Harare-based lawyer, said: "The appointment of Chinamasa as Air Zimbabwe board chair is a legal mistake. Currently, there's no board running the affairs of Air Zimbabwe, its powers having been suspended through the appointment of Saruchera as its administrator. You can't chair a ‘non-existent' entity."

Air Zimbabwe is currently not flying any planes after grounding its only serviceable Boeing 767-200ER last Friday.

The airline recently acquired an Embraer 145-ERJ to ease pressure on the bigger plane. The government says it is also in the process of paying off two Boeing 777s from Malaysia.

Source - ZimLive