Zimpapers faces US$13 million scandal amid Audit revelations

A shocking internal audit at Zimbabwe Newspapers (1980) Ltd (Zimpapers), the country's largest and oldest media conglomerate, has uncovered a potential US$13 million misappropriation of funds, raising red flags over possible fraud and corruption within the state-controlled entity.

The bombshell revelation emerged last week when Zimpapers board members presented the findings of the internal audit to Information, Publicity and Broadcasting Services Minister Jenfan Muswere at Munhumutapa Building in Harare. The audit has triggered a decision to commission a forensic investigation to trace the flow of funds and establish accountability.

A board member who attended the meeting told The NewsHawks that the financial irregularities stem from unclear expenditure records and inflated asset valuations.

"It emerged that US$13 million cannot be properly accounted for. While the explanation is that the money went to broadcasting projects - particularly Zimpapers Television Network - the figures don't add up. For example, equipment claimed to have cost US$4 million is worth less than US$1 million," the source said.

The discrepancy has prompted serious concerns at a time when Zimpapers is attempting to implement a major digital transformation strategy, aiming to modernize operations, improve content convergence, and ensure long-term sustainability. The transformation, however, is heavily reliant on funding and efficient financial management - both of which now face serious setbacks.

The internal audit follows the removal of senior management in January, amid allegations of resistance to financial oversight. Those affected include group chief executive Pikirayi Deketeke, chief finance officer Farai Matanhire, and chief marketing officer Tapuwa Mandimutsira. The trio was placed on forced leave during their notice periods after reportedly pushing back against the planned audit.

Their exit packages are also under the spotlight. According to the audit report, the former executives are collectively claiming US$1.3 million in terminal benefits - a figure now being questioned pending the results of the forensic investigation.

"The minister and board resolved that a forensic audit must come first before any exit packages are paid," the board member confirmed.

In the wake of the management shake-up, the Zimpapers board appointed William Chikoto (group editorial executive) as acting chief executive, and Annah Kufakunesu (group financial controller) as acting chief finance officer to oversee the transition.

Zimpapers is a public company listed on the Zimbabwe Stock Exchange and 51% owned by the government through the Zimbabwe Mass Media Trust. It publishes several state-aligned newspapers including The Herald, The Chronicle, B-Metro, and H-Metro, as well as The Sunday Mail and Sunday News. Its portfolio also includes provincial and vernacular titles such as The Manica Post, Kwayedza, and Umthunywa.

Beyond print, Zimpapers runs prominent radio stations Star FM, Capital FM, and Diamond FM, and operates online platforms branded after its newspapers.

As the media group grapples with financial struggles common across the industry, this unfolding scandal threatens to further derail its operations and taint its public credibility.

The forensic audit is expected to offer clarity and determine whether criminal charges or further disciplinary actions are warranted.