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Martin Kadzere Senior Business Reporter
COTTCO Holdings has sent acting head of finance Mr Muduviko Mubaiwa on forced leave to facilitate investigations into allegations of financial impropriety, sources have said.
“He has been asked to go on leave after some anomalies and irregularities on how he handled the company’s finances were observed,” said one source who requested not to be named. “His forced leave is to basically facilitate the investigations.”
Acting managing director Engineer Christopher Murove confirmed the development, but could not reveal more details. “I can confirm that I have sent him on leave to facilitate investigations on how he handled certain accounts. But I cannot go into details since we are going to carry out an investigation,” he said.
Mr Mubaiwa could not be reached for a comment by the time of going to print yesterday.
An accountant by profession, he joined the company in October 2012 as group head of treasurer. Cottco is currently implementing capital restructuring meant to convert all the bank loans into equity to address the going concern risk.
The Government intends to takeover the group’s debt through ZAMCO “who have since agreed with lenders on the balances to be taken over,” Cottco said last week.
“The board’s view is that once the capital restructuring is completed the group’s balance sheet will be strong and solvent and the increase in production that is supported by inputs already produced by the Government will return the group to profitability.”
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