Airzim trio remanded in custody

Fungai Lupande and Daniel Nemukuyu
Three people arrested this week for allegedly siphoning €5 175 593 and US$502 748 from Air Zimbabwe in an insurance scam yesterday appeared in court and will spend the weekend in custody.
This came as an Airzim disciplinary tribunal recommended the dismissal of company secretary Grace Pfumbidzayi (49) and acting group chief executive officer Innocent Mavhunga (53), just before they appeared in court.

The third accused is former group CEO Peter Chikumba (59), who was succeeded by Mavhunga at the airline.
Pfumbidzayi and Chikumba appeared before magistrate Mr Tendai Mahwe, jointly charged with criminal abuse of duty as public officers and fraud.

Pfumbidzayi was represented by Mr Andrew Muvirimi, while Chikumba had Mr Admire Rubaya as his lawyer.
Pfumbidzayi returned to court a second time, this time jointly charged for fraud with Mavhunga.
Mavhunga was represented by Mr Ticharwa Garabga.

All three lawyers consented with prosecutor Mr Michael Reza to have the matters postponed to Monday for bail applications and Mr Mahwe remanded them in custody to Monday.

Mr Reza told the court that Chikumba of No. 5 Zebra Close, Borrowdale West, Harare, was now the CEO of Celebration Church.
The court heard that Pfumbidzayi of No. 901 Mt Pleasant Heights was the Airzim legal manager and company secretary.
The complainant is Airzim represented by acting group CEO Mr Edmund Murambiwa Makoni.

It is alleged that last year Airzim’s board – then chaired by Mr Ozias Bvute – queried the amounts paid to Navistar Insurance Brokers (Pvt) Ltd by the airline in respect of aviation insurance premiums between April 2009 and April 2013.

The board appointed BCA Forensic Audit Services to probe the airline’s financial records.
On December 28 last year, it is alleged that the forensic audit revealed that Chikumba and Pfumbidzayi abused their duty as public officers by appointing Navistar Insurance Brokers (Pvt) Ltd without going to tender.

Secondly, on March 20, 2009 the pair allegedly connived with Givemore Nderere, Vukile Hlupe and Orten Mawire – directors of Navistar Insurance Brokers and still at large – to inflate aviation insurance premiums.

It is alleged that the accused presented several inflated debit notes to the airline and authorised payments in respect of insurance premiums to Colemont Reinsurance Brokers (Pvt) Ltd and Marsh Reinsurance Brokers (Pvt) Ltd, both based in the United Kingdom.
As a result, the airline’s finance department allegedly released €15 783 452,93 to Navistar, who in turn remitted €10 607 859,22 to the international brokers. Navistar and the accused allegedly converted €5 895 695,49 to their own use.

Thirdly, on May 8, 2009 Pfumbidzayi allegedly connived with Nderere, Hlupo and Mawire to misrepresent to the airline that there was an urgent need to pay US$142 300 to the European Union Commission to avoid the placement of the airline on sanctions.
They reportedly said the payment required in terms of EU Commission regulation number 898-2005.

As a result, the money was paid to Navistar Insurance Brokers but was allegedly converted to personal use.
BCA Forensic Audit Services’ results in respect of Mavhunga and Pfumbidzayi were that in 2002, AirZim leased two A320 airbuses from a Hong Kong company, Chinasonango (Pvt) Ltd, and the aircraft were fully insured up to March 19, 2013.

It is alleged that Mavhunga and Pfumbidzayi connived with Nderere, Hlupo and Mawire and misrepresented to the airline that both Airbuses were not insured.

They allegedly manufactured four fictitious debit notes for US$1 659 276,58 for aviation insurance premiums. The transaction was intercepted by auditors when US$360 448,68 had already been released.

Sometime in March last year, the pair allegedly connived with Nderere, Hlupo and Mawire to misrepresent that there was need to pay US$800 000 to Navistar for insurance of the entire fleet, excluding the two Airbuses.

However, the Airzim board leant from international broker Marsh Reinsurance Brokers (Pvt) Ltd that premiums were already paid up to April 2013.

In recommending Pfumbidzayi’s dismissal from the airline yesterday, the disciplinary tribunal chaired by Mr Wellington Pasipanodya said her conduct was inconsistent with her conditions of employment.

The tribunal convicted Mavhunga of gross incompetence and acting inconsistently with his duties, but he was cleared of fraud and theft charges.

Nonetheless, the tribunal recommended his dismissal. Sources said acting CEO Mr Makoni wrote letters of dismissal to the two yesterday morning.