Online Reporter
Zvikomborero Parafini
Court Reporter
THREE men, including a PSMAS finance executive, who are facing fraud charges over a suspected ICT procurement scam, have been granted US$50 bail each.
The scam could have exposed the medical aid society to more than US$17 million in potential losses.
The trio spent the weekend in custody.
Barnabas Gabaza Mlambo (53), Tafara Tomukudza Mafemba (27) and Marshall Mashavave (53) appeared before Harare magistrate, Tapiwa Kuhudzai, who granted them US$500 bail each.
They were ordered not to interfere with State witnesses, to reside at their known addresses and to report every fortnight at the Zimbabwe Anti-Corruption Commission (ZACC) offices in Harare. The trio was represented by Paida Saurombe. The State initially opposed bail but later consented to their release.
The three are 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.
The State alleges that Barnabas and Mafemba are co-directors of Minana Technology Solutions, while Mashavave has been PSMAS finance executive director since 2016.
Mafemba is also the biological nephew of PSMAS board member Tawanda Tagwireyi.
According to the State, PSMAS held a strategy retreat in December last year, 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 made to extend the existing Nexus system licence.
However, the accused, allegedly acting in connivance with Tagwireyi, Munyaradzi Chibvongodze and Simon Nyadundu, allegedly hatched a plan to defraud PSMAS under the guise of procuring a new system to address 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 they claimed could resolve the organisation’s system challenges.
Three days later, Barnabas allegedly shared a proposed module architecture and indicated that Minana could start scoping work on March 9, with a Proof of Value exercise proposed for March 23.
The State alleges that Mondo subsequently agreed with Barnabas that Minana would demonstrate its software at no cost to PSMAS, with the medical aid society retaining the right not to proceed with procurement if it was dissatisfied with the product.
However, following the expiry of Mondo’s contract on March 31, Chibvongodze allegedly took over as acting head of ICT.
He is accused of working with the accused and other officials to facilitate the engagement of Minana 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 contract requiring PSMAS to pay US$500,000 for services Minana had initially undertaken to provide free of charge.
Between approval of the Proof of Value exercise 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 invoices, inclusive of Value Added Tax, despite Minana not being VAT registered.
The invoices, totalling US$57,658, were allegedly submitted to Mashavave, who is accused of authorising payments into Minana’s CABS account despite allegedly 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 PSMAS 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 maintenance fee of US$100,000 and a once-off implementation fee of US$562,500.
On August 27, Chibvongodze allegedly authored a memorandum stating that Minana had satisfactorily demonstrated its product and sought approval from Nyadundu to procure the system directly without going to tender.
