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MMCZ fraud case exposes Gudyanga, per sec awarded self allowances without meetings held

23/03/2017 00:00:00
by Court Reporter
 
MINES ministry permanent secretary, Francis Gudyanga
 
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MINES ministry permanent secretary Francis Gudyanga, who dragged his two subordinates to court over $625 000 fraud allegations, was left stammering and fuming in the witness stand after his earnings were exposed.

His subordinates, Richard Chingodza, Minerals Marketing Cooperation of Zimbabwe (MMCZ) general manager finance and administration and the finance manager Hanaan Tongai Chitate, are accused of awarding themselves loans and allowances, prejudicing the parastatal of the above mentioned amount.

It emerged that Gundyanga also received allowances for board sitting among other allowances yet the board never held any meeting.

He was the board chairperson and the only board member since 2013.

Under cross examination with the accused’s lawyers, Admire Rubaya and Oliver Marwa, Gudyanga told court he sat on the board alone since December 2013 until two weeks ago when the board was dissolved.

This was contrary to the cooperation’s Act which required the general manager and others to also sit in the board and run the company in consultation with the company secretary.

Gudyanga refused to read his alleged earnings in court saying he wanted the matter to be investigated and also bring his bank statement.

He accused the lawyers of trying to extract irrelevant information from him before the lawyer read out the document.

According to that board fees statement, Gudyanga earned over $23 000 during his tenure as board chairman yet no meeting was ever held.

“I’m equally shocked as I never received the mentioned amounts. I would want the case to be investigated,” he said while stammering and shaking.

The document was, however, not tendered as exhibit.

The company secretary, Nomsa Jane Moyo told court that Gundyanga and the two accused ran MMCZ like a band.

“They never consulted me and they ran the cooperation like a band. It was a three man band they elbowed me out of everything as much as they were aware that they were supposed to consult me in decision making and advice,” she said.

Gundyanga, however, said Moyo’s statement was false as he consulted her through Chingodza.

He said Chingodza and Chitate awarded themselves the benefits without his approval as the “board.”

The case was then postponed to next week for trial continuation. 



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Chingodza and Chitate are on $5 000 bail each.

It is their defence that they acted in their capacity to award themselves some of the alleged allowances.

According to prosecutors, Chingodza benefited $390 985 while his accomplice benefitted $234 241 which was deposited into their bank accounts between June 2013 and April 2016.

The state alleges that all MMCZ employees require approval from their superiors whenever applying for loans.

The general manager is required to seek approval from the board chairperson on all requests while the deputy general manager‘s application are with consultation with the board chairperson.

However contrary to their duties and without following they correct procedures the two awarded themselves the above mentioned amounts.

Magistrate Elijah Makomo is presiding over the case while Molly Mutamangira is prosecuting.


 
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