Catholic priest up for US$38k theft

A damning forensic audit has revealed the misappropriation of US$38,000 at Clare Fashions, a company wholly owned by the Roman Catholic Diocese of Mutare, exposing serious lapses in financial controls and oversight. At the centre of the scandal are Father James Nyanga, the former managing director, and Albert Mabhiza, the administrative assistant, whose actions the audit describes as a “complex web of theft and deception.”

The Special Financial Review and Forensic Audit, conducted between January and April 2024, concluded that Mabhiza exhibited “clear criminal intention” to defraud the company, with Father Nyanga allegedly complicit in the wrongdoing. Despite these serious findings, Father Nyanga has since been reassigned within the diocese, prompting questions about accountability and governance.

Clare Fashions generates revenue primarily from selling school uniforms to Roman Catholic-owned schools. The audit report highlights multiple control deficiencies, including delayed issuance of receipts, lack of verification of collected funds, and overlapping duties between the administrative assistant and finance staff. Mabhiza, who failed to cooperate with auditors, was responsible for receipting cash, maintaining the cash book, managing cash boxes, and participating in cash counts—functions that created opportunities for embezzlement.

The audit traced a sequence of irregularities, including lost safe keys, manipulated cash book entries, and unaccounted cash, culminating in a reported loss of US$37,964. “The progression of events resulted in Clare Fashion’s management advising the board, through a letter dated June 11, 2024,” the report stated, emphasizing that the administrative assistant’s overlapping functions enabled the misuse of funds and manipulation of records without immediate detection.

Financial irregularities were also identified in several diocesan schools, including St Judes in Nyazura, Regina Coeli in Nyanga, Charles Lwanga in Chimanimani, and Mweyamutsvene in Mutare rural. At Charles Lwanga, Father Owold Saunyama, representing the Responsible Authority, was transferred following the discovery of financial discrepancies.

Father Philip Kembo, Education Director for the Diocese of Mutare, defended the church’s approach to the findings, explaining that internal audits precede any external involvement, depending on the severity of the issue. “The diocese will work hand-in-glove with the ministry to initiate legal procedures to recover lost public funds,” he said, adding that the church follows the Constitution and ensures due process for the accused before taking action.

Clare Fashions itself issued a statement denying participation in any defamation, asserting that internal reports and audit findings are confidential, and emphasizing that the company has processes for continuous review and redress. The statement also stressed that employees’ disciplinary matters are confidential and separate from the shareholder, the diocese.

The audit report further recommended tightening of internal controls, including prompt issuance of receipts, rigorous cash counts with dual oversight from the managing director and finance officer, and encouraging direct bank transfers from schools to reduce cash handling risks. The report stressed the need for sequential monitoring of receipts, immediate declaration of cash collected, and thorough documentation of all counts and treasury activities.

While Clare Fashions continues operations, the forensic audit has laid bare vulnerabilities in the company’s financial management, underscoring the urgent need for stronger oversight to prevent similar losses in the future.