adminHarare Bureau
GOVERNMENT has sent State-owned diamond miner Marange Resources top management on forced leave and has moved to appoint an audit team to conduct a special probe of the company amid allegations of malpractices and poor corporate governance.
It is also understood that Zimbabwe Mining Development Corporation (ZMDC) general manager Jerry Ndlovu has also been suspended with Wilson Chinzou replacing him in an acting capacity.
The whip is likely to be cracked on senior management at these and other mining-related firms in which government has a stake.
Mines and Mining Development Minister Walter Chidhakwa had already dissolved the boards of ZMDC, Marange Resources and the Minerals Marketing Corporation of Zimbabwe (MMCZ).
This was after President Mugabe expressed reservations on the manner in which ZMDC was conducting its sole and joint venture operations in diamond-rich Chiadzwa.
The probe into Marange Resources will, among other issues, centre on diamond sales, production and technical and operational management.
This was said yesterday by the Secretary for Mines, Professor Francis Gudyanga.
The investigation follows allegations of malpractices and non-compliance with laid down procedures.
Marange Resources, one of seven diamond miners in Chiadzwa, is wholly-owned by ZMDC.
While the investigation intends to cover the period between January and December 2013, any issues that may require probing outside this period will also be pursued.
“The parent ministry has been receiving allegations of malpractices and non-compliance with (the company’s) laid down procedures, which have necessitated this investigation into the affairs of Marange Resources,” said Prof Gudyanga.
“(And) to pave way for the investigation . . . all senior management have been sent on special leave with full benefits until further notice,” he said.
Those sent on leave are Obert Dube, the company’s chief executive, and his personal assistant Sydil Dhliwayo.
Chief finance officer Wilfred Munemo, procurement executive Piri Mukono, human resources executive Elijom Shumba, chief security officer Numeri Muwandi, and sales and marketing executive Wilfred Munamati have also been sent on leave.
Dube said he was unaware of the development, referring questions back to Prof Gudyanga.
“I started my leave on December 18 and I am not yet back at work. Talk to the permanent secretary who is also the chairman of the company,” said Dube.
Ndlovu said he was out of town and also referred questions to the Mines Permanent Secretary.
The audit team is expected to submit its findings by January 31.
Prof Gudyanga said the team was tasked to establish if the Marange Resources board had carried out its oversight role as guided by good corporate governance principles and ethics.
It will also investigate if management was conducting its duties “effectively and efficiently as guided by its job description, the key result areas and company policies and procedures manuals”.
A financial audit for January 2010 to December 2013 will be carried out, in addition to methods used to determine the firm’s remuneration structures.
The team will also establish the fees and allowances paid to board members against those stipulated by the shareholder and examining the human resources recruitment criteria.
Prof Gudyanga said the team will further probe allegations of malpractice in procurement, recruitment and technical and operational management.
There have been concerns over remittance of diamond revenues with allegations that some miners were understating figures.
The country adopted a medium term economic blueprint, the Zimbabwe Agenda for Sustainable Socio-Economic Transformation, covering 2014 to 2018 which will be largely funded from domestic financial resources.
Economic analysts have said in light of Zimbabwe’s inability to borrow from multilateral lenders due to Western sanctions on the country, transparency and accountability in the minerals extraction sector was of paramount importance.
Minister Chidhakwa recently said there was need to ensure tight security in production and marketing of Zimbabwe’s minerals, saying government would investigate allegations of loopholes in accountability.
Online Reporter