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Zesa subsidiary donated US$16,000 to Zanu-PF

by Staff reporter
19 Mar 2020 at 06:32hrs | Views
A FINAL forensic audit on Zesa Holdings by PricewaterhouseCoopers, which was tabled before Parliament on Tuesday by Energy deputy minister Magna Mudyiwa has revealed that one of Zesa's subsidiary companies ZENT — a manufacturer of transformers, donated US$16 825 to Zanu-PF in 2013 without approval from management.

The donations went towards a Zanu-PF dinner, the late former President Robert Mugabe's 21st February birthday bash and Musha Mukadzi, an army organisation which was formed by Vice-President Constantino Chiwenga's estranged wife, Marry.

The forensic audit also revealed that the then Energy deputy minister Munacho Mutezo on January 9, 2014 also received an unsanctioned donation of US$525 from ZENT, amongst other unapproved donations.

"ZENT made donations amounting to a total US$16 825 . . . to a Zanu-PF dinner – (for the) Annual People's Congress (2013)," read the forensic audit report. "US$525 was donated to the former Deputy Minister of Energy on January 9, 2014; US$2 000 to the 21st February Movement on February 6, 2014; US$3 000 to Musha Mukadzi Armed Forces Foundation on May 8, 2014," they said.

Other unauthorised donations by ZENT were US$1 000 towards the launch of the Zimbabwe Psychological Association on December 3, 2014; US$200 on February 27, 2015 and US$100 on July 2017 which were both donated to the Zimbabwe Republic Police Harare South District.

"The above donations were done outside ZENT's mandate as spelt out in Administration Note number 46 of 2004 which is for youth and skills development. Furthermore, the donations were not approved by Zesa Holdings, making them disallowed donations. As a result, ZENT suffered actual prejudice of US$16 825," the report read.

The auditors named a Mr Mutasa and Mr Tichawengana from ZENT as being responsible for contravening the ZENT administration note number 46 of 2004.

"We sent out confirmations to Zanu-PF requesting confirmation of receipt of the said amounts. At the time of preparing this report, the responses had not yet been submitted to us."

On their recommendations, the auditors said donations made by ZENT should be consistent with the Zesa Holdings policy on donations; as well as be in line with the ZENT mandate as spelt out in the administration note number 46 of 2004.

They said Zesa spokesperson Fullard Gwasira was asked to explain whether the donations paid by ZENT were processed via Zesa Holdings for authorisation or whether they knew that the donations were paid.

"Gwasira confirmed via e-mail that none of the donations passed through Zesa PR office for authorisation by the then group chief executive officer Josh Chifamba. Gwasira further stated that for all donations paid — whether to a political party or charitable organisation, authority from Zesa Holdings should have been obtained.

The forensic audit also established that Cell Insurance was providing all insurance services to ZENT, but no tender procedures were followed in its appointment as no comparisons were conducted to determine whether its prices or premiums were competitive. "We enquired with Mr Chikwenhere regarding Zesa Holdings' shareholding in Cell Insurance and he availed to us documentation showing that Zesa Group holds 44, 28% in Cell Insurance through Zesa Holdings at 16, 50% and Zimbabwe Power Company at 27,78%. Cell insurance, therefore, is an associate of Zesa Holdings."

The auditors said ZENT senior management and board did not always declare potential conflicts of interest in line with the Zimbabwe national code of corporate governance.

"Total sampled payments made to Cell Insurance in respect of insurance services amounted to US$243 141," the forensic report said.

Source - newsday

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