Forensic audit report exposes rot at NetOne

The suspended NetOne management led by chief executive officer Mr Reward Kangai allegedly paid a foreign firm, Gemalto, about $6 million in advance for the One Wallet mobile cash platform that has generated a paltry $51 000 since its introduction.

According to media reports, the company also awarded tenders running into millions of dollars to some companies without going through the State Procurement Board as provided for by the law. These revelations are contained in the final forensic audit instigated by the Auditor-General's Office.

Insiders said auditors Price Waterhouse Coopers confirmed a number of irregularities that resulted in the audit being carried out.

"Among the findings were the fact that Gemalto was paid nearly $6 million for the supply of the One Wallet mobile money platform yet during its entire existence, the system only generated $51 000 for NetOne," said the source.

Another software supplier, Convergys, was paid over $10 million for six contracts of which only two had State Procurement Board approval. Of that money $1 million was paid in advance without approved invoice or contract. The other findings were that fuel supplier Redan was paid over $5,7 million in fuel supplies without going to tender.

Meanwhile, the NetOne board has started the process of firing Kangai and the rest of the management who were part of an alleged corporate malfeasance at the parastatal as detected by the auditors.