Online Reporter
Zvikomborero Parafini
THREE men, including a Premier Service Medical Aid Society (PSMAS) finance executive, are expected back in court today to mount their bail application.
The three are facing fraud charges involving an alleged ICT procurement scheme that exposed the medical aid society to potential losses of more than US$17 million.
Mlambo Gabaza Barnabas (53), Tafara Tomukudza Mafemba (27) and Marshall Mashavave (53) appeared before Harare magistrate Tapiwa Kuhudzai on Friday, who remanded them in custody to today for bail application.
The trio is accused of orchestrating a fraudulent procurement arrangement involving Minana Technology Solutions (Pvt) Ltd, which allegedly resulted in actual financial prejudice of US$57,658 and potential prejudice of US$17,160,060.
According to the State, Barnabas and Mafemba are co-directors of Minana Technology Solutions, while Mashavave has been PSMAS finance executive director since 2016.
Mafemba is also a biological nephew of PSMAS board member Tawanda Tagwireyi.
The State alleges that sometime in December last year, PSMAS held a strategy retreat during which a directive was issued for an ICT landscape assessment to inform the development of the organisation’s 100-day plan. A resolution was also passed to extend the existing Nexus system licence.
However, the accused, allegedly acting in connivance with Tagwireyi, Munyaradzi Chibvongodze and Simon Nyadundu, hatched a plan to defraud PSMAS under the pretext of procuring a new system capable of addressing shortcomings in the existing Nexus platform.
On March 2, Tagwireyi allegedly instructed the head of ICT, Luckson Mondo, to involve Mafemba and Mashavave in demonstrating software that they claimed could resolve the organisation’s system challenges.
Three days later, Barnabas shared a proposed module architecture and indicated that Minana Technology Solutions could commence scoping work as early as March 9, with a Proof of Value exercise proposed for March 23.
The State alleges that the ICT head subsequently agreed with Barnabas that the company would demonstrate its software at no cost to PSMAS, with the medical aid society retaining the right not to proceed with procurement if dissatisfied.
However, following the expiry of the ICT head’s contract on March 31, Chibvongodze allegedly took over the position in an acting capacity.
He is accused of working with the accused and other officials to facilitate the engagement of Minana Technology Solutions for a Proof of Value exercise covering six functional areas, including payment automation, reconciliation and financial control.
The State alleges that on April 29, Nyadundu approved a memorandum without following tender procedures, resulting in the signing of a fraudulent contract requiring PSMAS to pay US$500,000 for services that Minana had initially undertaken to provide free of charge.
Between the approval of the Proof of Value and conclusion of the contract, the scope of work allegedly expanded from six functional areas to 12 modules without evidence of formal approval, procurement review or an authorised variation.
The court heard that on June 11, July 1 and August 4, Barnabas and Mafemba allegedly generated three fraudulent invoices, inclusive of Value Added Tax, despite their company not being VAT registered.
The invoices, amounting to US$57,658, were submitted to Mashavave, who allegedly authorised payments into Minana’s CABS account despite knowing that the company and its directors had not performed any work for PSMAS.
The State further alleges that on August 18, Barnabas and Mafemba falsely represented that they had fully demonstrated their product to the satisfaction of PSMAS.
They subsequently submitted a quotation for the Premier Connect dual-currency platform, offering the society an outright purchase option of US$3,750,000.
Alternatively, PSMAS could lease the platform at US$112,500 per month for five years or US$97,590 per month for seven years, together with a monthly
