Air Zimbabwe insurance scam judgment tomorrow

Tendai Rupapa Harare Bureau
HARARE regional magistrate Fadzai Mthombeni is tomorrow expected to pass judgment in the case in which two former Air Zimbabwe Holdings (Pvt) Ltd bosses are accused of defrauding the Airline of €5,175,593 and $502,748 in an alleged insurance scam

The airline’s former secretary Grace Pfumbidzayi and former group chief executive Peter Chikumba, are facing charges of criminal abuse of duty as public officers and fraud.

The pair was put on their defence after their application for discharge at the close of the State’s case was dismissed.

Mthombeni dismissed the application saying the two had a case to answer.

During trial, Chikumba in his defence, distanced himself from the appointment of Navistar Insurance Brokers saying Pfumbidzayi acted unilaterally in appointing the company contrary to the organisation’s policy pertaining to signing of business contracts.

Chikumba had earlier testified that he neither knew nor got involved in the appointment of Navistar.

“Navistar was appointed in the letter dated March 18 2009 and the second accused person did not address or copy to anyone else. I did not even sign it because I neither knew nor got involved in that appointment,” he said.

However, it was Pfumbidzayi’s submission that Chikumba was privy to all the stages leading to Navistar’s appointment.

She said Chikumba even chaired a meeting that resolved the appointment of Navistar Insurance brokers for the airline.

“I was getting information that our fleet was not covered and it had been communicated to me that the insurance had been terminated because of sanctions. This meant that the whole operation was illegal. “. . . because the implications were largely political and needed to be communicated upwards. I informed Chikumba who in turn asked for my advice and the way forward.”

Pfumbidzayi said she was then instructed by Chikumba to “either ground the fleet or find alternative cover”. “I phoned local companies and informed them that we were shortlisting for a local insurance broker. If interested, companies would prepare presentations and forward profiles. I already had profiles of companies such as ZIB and Navistar in our files,” she said.

She said Navistar came with their presentation before Chikumba and management on March 18, 2009. “On March 18, we stopped a management meeting that we had to accommodate Navistar’s presentation. Chikumba chaired the meeting and Navistar introduced FBC and Colemont,” said Pfumbidzayi.

Prosecutor Daniel Muchimbiri questioned why the appointment of Navistar remained a “matter under the carpet”. Muchimbiri queried why Chikumba did not take action after a letter of gratitude was addressed to him from Navistar to show that he was not involved. She questioned how the letter could be addressed to him if he was not involved.

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