Standoff erupts between Zimpapers board and management

A major standoff has erupted between the Zimpapers board and management, and three former company executives dismissed in January over allegations of corruption and fraud, as the board insists no exit packages be paid until a forensic audit is completed.

The three former top managers - Pikirayi Deketeke (former chief executive), Farai Matanhire (former chief finance officer), and Tapuwa Mandimutsira (former chief marketing officer) - are demanding a combined US$1.3 million in exit benefits.

However, the Zimpapers board, chaired by Doreen Sibanda, together with acting chief executive William Chikoto, have withheld payments pending the outcome of a forensic audit launched to investigate serious financial discrepancies within the company.

The audit was initiated with the backing of Information Minister Jenfan Muswere, after an alarming US$13 million was reportedly found to be unaccounted for, raising suspicions of fraud, corruption, and misappropriation.

This investigation coincides with a probe by the Zimbabwe Anti-Corruption Commission (ZACC) into the Zimpapers Pension Fund following complaints about irregular employee deduction remittances, which have caused some company units to accrue debts to the fund.

Further concerns surround the opaque sale of several company properties under unclear circumstances, with corruption allegations clouding the transactions.

The three executives were removed in January after their contracts expired, with Minister Muswere's approval. Deketeke, who led the company for 37 years and spearheaded its diversification into an integrated media group, was replaced by Chikoto - the group's editorial executive - in an acting chief executive capacity.

Chikoto brings extensive editorial and management experience, having served as editor for The Herald and The Sunday Mail. Alongside acting editorial executive and de facto editor-in-chief Elias Mambo, Chikoto is spearheading Zimpapers' newsroom transformation project, a vital component of the company's wider digital transformation strategy.

Zimpapers has reiterated its commitment to digital innovation, expanding market reach, and enhancing customer experience amid these ongoing internal reforms.