Police alerted to Airzim graft last year

Daniel Nemukuyu Senior Reporter
police received a criminal report on the alleged multi-million US-dollar fraud at Air Zimbabwe Private Limited in December last year and officials at the State enterprise are apprehensive that action on the complaint is moving at a snail’s pace.Police yesterday refused to comment on the case, with spokespersons referring questions to each other without giving any update on the matter.

Sources said the report was with the Criminal Investigations Department’s Serious Fraud Squad in Harare. They said the report was made on December 28, along with a copy of a forensic audit report on Air Zimbabwe’s dodgy aviation insurance dealings. BCA Forensic Auditors submitted its report to former Air Zimbabwe board chair Mr Ozias Bvute that same day, recommending criminal proceedings be instituted against several senior managers and executives at two insurance companies.

Revelations that a police report was made came as Transport and Infrastructural Development Minister Dr Obert Mpofu yesterday dissolved boards of parastatals under his ministry, including Air Zimbabwe’s, because they failed to achieve viability, improved service delivery, make significant contributions to the economy and lacked accountability.

Several managers, including acting chief executive Mr Innocent Mavhunga, company secretary Mrs Grace Pfumbidzayi, and human resources manager Mr Oswaald Madziwa, were suspended over the aviation insurance scam that saw the airline losing millions of dollars.

A dsciplinary tribunal has found Mrs Pfumbidzayi guilty of fraud involving more than US$5 million, while proceedings against the other accused have reportedly closed and verdicts are expected soon.

Police spokesperson Chief Superintendent Paul Nyathi referred the Herald to CID spokesperson Detective Assistant Inspector Portia Chinho, saying she was in a better position to comment on the matter.

“Have you talked to the CID spokesperson?” he said. “Talk to her first and if you do not find any joy, you can still come back to me.”
Det Insp Chinho in turn said Chief Supt Nyathi was best-placed to answer as she had already briefed him.

“I have already talked to him about the case and he is in a better position to assist you,” she said.
Chief Supt Nyathi then referred The Herald to Senior Assistant Commissioner Charity Charamba. But she said she was not aware of any communication from Chief Supt Nyathi.

“I have no information on that,” she said.
A disciplinary tribunal found Mrs Pfumbidzayi guilty of fraud involving 5 million euro and US$1,2 million; and acting contrary to her contract of employment to Air Zimbabwe’s prejudice.

Mrs Pfumbidzai now awaits her penalty. The tribunal yesterday postponed to Thursday next week hearing the case in which Mr Madziwa is charged with theft and fraud charges involving US$2 671 607,20. He is also charged with gross incompetence or inefficiency, and acting contrary to his employment contract.

The tribunal, chaired by Mr Wellington Pasipanodya, deferred the hearing to allow the human resources manager to bring his lawyer.
The BCA Forensic Auditors report unearthed massive looting at Air Zimbabwe and recommended that former board chair Mr Bvute make a police report in respect of several individuals.

The fingered executives are Mr Mavhunga, Mrs Pfumbidzayi, Mr Madziwa, finance and administration manager Ms Patience Tichagwa, strategy and economics boss Mr Norbert Machingauta and acting general manager Mr Nicholas Mujere.

Acting general manager Mr Nicholas Mujere, former finance and corporate services manager Mr Oswell Matore, as well as Mr Givemore Nderere (Navistar Insurance Brokers managing director), Mr Vukile Hlupo (Navistar director) and Mr Orton Mawire (Navistar finance director and company secretary) were also cited for criminal investigation.

BCA also said proceedings should be instituted to recover amounts lost in the fraudulent transactions. It also recommended that the forensic audit report be passed onto the Insurance Commissioner to take appropriate action against implicated firms.

BCA added that implicated individuals should be specified in terms of the Prevention of Corruption Act (Chapter 9:16).
In dissolving boards of parastatals under his ministry, Dr Mpofu yesterday said the action was pursuant to the objectives and goals of the Zimbabwe Agenda for Sustainable Socio-Economic Transformation whose implementation was underpinned and guided by results-based management.

Affected boards are those of the Zimbabwe National Roads Administration, National Railways of Zimbabwe, Air Zimbabwe, the Civil Aviation Authority of Zimbabwe, and the Traffic Safety Council of Zimbabwe.

Mr Abdullah Kassim chaired the Zinara board, while Dr Khotsho Dube chaired NRZ. Airzim was chaired by Mr Bvute, while the CAAZ board chairperson post fell vacant following the election of Advocate Jacob Mudenda to Speaker of the National Assembly.

The Traffic Safety Council of Zimbabwe was chaired by Mr Nelson Mahema.