Fuel firm board fired over governance failures

Energy and Power Development Minister Zhemu Soda has fired the Petrotrade board after a team of investigators confirmed failures in corporate governance, and in particular over the appointment of senior staff.

In March this year, the minister suspended the board which he had appointed in 2021 pending investigations.

Minister Soda yesterday said members of a new board will be appointed soon.

"On March 9, 2022, I suspended the entire board of directors for Petrotrade, which I had appointed in terms of Section 11 of the Public Entities, Corporate Governance Act in May 2021.

"This was as a result of incidents that raised corporate governance concerns, in particular, the appointment of senior staff.

"I then appointed a team to look into the matter and a report has since been submitted to my office. The team's findings are that the appointment of senior staff was not done according to procedure," said Minister Soda.

The board was fully aware that the Government valued Public Entities Corporate Governance Act and the minister stressed he was acting in terms of the law.

"The board will recall that during its inauguration, the ministry advised that State entities are managed in terms of the relevant laws, such as the Public Entities Corporate Governance Act, as well as internal Government procedures and practices," said the minister.

"It is against this background that I am acting on the recommendations of the investigations team to dismiss the board in terms of Section 16 of the Public Entities Corporate Governance Act."

The minister acknowledged the position taken by some of the members to resign saying this is acceptable to the ministry and a clear indication of professionalism and humility with which they have handled the matter.

"I will therefore proceed to take steps to ensure that Petrotrade has a governing body to execute the many tasks that Petrotrade requires to undertake and contribute to the growth of the energy sector and ultimately, the economy.

"In this regard, I will constitute an interim board, which should, among other matters, ensure that the results of the currently undertaken forensic audit are implemented," said the Energy Minister.

The Petrotrade board was led by chairperson Advocate Tinomudaishe Chinyoka and his deputy Zanele Dube.

Other board members were Gladys Mumhure, Simbabrashe Eric Mhuriro, Ferida Matambo, Lilian Timveous, Getrude Marabada, Godfrey Ncube and Dakarai Mukuku.