NetOne CEO arrested

NetOne chief executive officer Raphael Mushanawani was arrested on Monday over allegations of fraud involving more than US$1.2 million, the Zimbabwe Anti-Corruption Commission (ZACC) confirmed.

The case relates to NetOne's 2022 decision to engage Farevic Systems to replace its SAGE 1000 system with a new Enterprise Resource Planning (ERP) platform at a contract price of US$3.5 million.

According to ZACC, while the project was ongoing, Mushanawani allegedly conspired with NetOne's chief technology officer, Christopher Muchechemera, to secretly contract Lunartech Solutions for an upgrade of the same SAGE 1000 system at US$257,600. Investigators allege that Mushanawani subsequently signed two further addendums with Lunartech, inflating the cost of upgrading a system already slated for replacement to more than US$1.2 million.

ZACC also alleges that Mushanawani entered into another unapproved deal with Diztech, paying US$79,467 for consultancy and training services that were already covered under the Farevic Systems contract.

The transactions were reportedly carried out without the knowledge or approval of NetOne's executive committee or board.

Mushanawani is expected to appear before Harare Magistrates' Court on Tuesday.