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million fraud by senior managers who then awarded themselves hefty packages in preparation for their exit, the High Court heard yesterday.
These revelations emerged in the case in which Energy and Power Development Minister Elton Mangoma is being accused of authorising the purchase of five million litres of diesel from a South African company without going to tender.
Defence lawyer Ms Beatrice Mtetwa cross-examined State witness Mr Justin Mupamhanga, who is the Secretary for Energy.
Mr Mupamhanga said a draft forensic audit had revealed that US$35 million might have been misappropriated at Noczim.
“There was a forensic audit conducted through the Comptroller and Auditor-General. The company that was engaged has produced a draft report so I cannot rightfully answer to the US$35 million because I have not seen the final report,” he said.
On further questioning, Mr Mupamhanga conceded that the draft report indicated US$35 million had been misappropriated.
He said he did not report the matter to either the police or the Attorney-General’s Office because he could not base any allegations on a draft report.
Mr Mupamhanga said he had not suspended any of the implicated managers because he was waiting to hear their side of the story and he had not presented a final report to the board.
He said he was aware that Mangoma had made a report to the AG’s Office on the matter.
Ms Mtetwa asked him if he was aware that the persons involved quickly prepared exit packages for themselves.
The Energy Secretary said he was not aware of that, but he knew of a process of retrenchment of employees had started.
He said some of the retrenchees were among those implicated in the alleged US$35 million scam.
Mr Mupamhanga said Mangoma had rejected hefty packages for those implicated in the alleged misappropriation. He added that Energy Deputy Minister Hubert Nyanhongo had asked for a reduction in the size of the packages.
On the issue of the five million litres of fuel that was supposed to come from the South African company, Ms Mtetwa said Mr Mupamhanga had not objected to the deal because they wanted him out of the way – a charge the secretary denied.
Asked if Mangoma actions were not a direct response to a fuel crisis they had created, Mr Mupamhanga said: “I cannot judge the Minister’s actions towards us.”
The matter was deferred to the next term of the High Court in May at the end of the cross-examination.
A date for continuation of the trial is yet to be set.
Online Reporter