Fraud charges hang over new Air Zimbabwe boss

CHIKUMBA

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By Staff Reporter

PETER Chikumba, the former Air Namibia CEO sacked after corruption allegations is the new chief executive officer for Air Zimbabwe.

Captain Oscar Madombwe held the position in an acting capacity.

Zimbabwe's Transport Minister Chris Mushowe announced the new appointment late Wednesday.

Chikumba, a Zimbabwean national, quit as CEO of Air Namibia after he was suspended on fraud allegations. He opted to resign, and airline officials did not pursue the charges.

Ironically, Chikumba was known to pray before meetings with senior Air Namibia managers, "asking God to help him and his team to rid Air Namibia of fraud and corruption".

In Namibia, Chikumba -- who also worked as the International Air Transport Association's regional director for Africa -- faced accusations of fiddling with his work permit to secure its extension. He used the work permit to obtain a new contract with Air Namibia.

Other allegations related to the irregular issuing of flight tickets, unauthorised night flights, claims of huge losses incurred in Gambia and foggy transactions in the acquisition of parts for Air Namibia's Fokker F.28.

The Gambian losses related to an arrangement entered between Air Namibia and the bankrupt Gambia International Airlines for a joint venture, and Chikumba was posted to Gambia to head the operation. Air Namibia pulled out of the venture after posting massive losses.

With over 30 years aviation experience, few can match Chikumba's CV in the industry. But questions will be asked how a man who was never cleared of fraud charges in Namibia can take over at crisis-hit Air Zimbabwe.

Zimbabwe's central bank has recommended to the government to dispose of its interest in Air Zimbabwe, which is wholly state-owned, in order to raise much needed foreign currency to kick-start the economy.

The Zimbabwean government has talked about plans to privatise dozens of state firms, but analysts claim it holds onto the unprofitable enterprises as part of a political patronage programme.

Air Zimbabwe has huge debts and has been hit by declining standards. Regional and domestic flights are routinely cancelled due to constant breakdowns, the shortage of fuel and in cases, because Air Zimbabwe has failed to pay landing fees.

Chikumba has not spoken after his appointment, but he is known to be critical of African airlines, which he says are "not being run as commercial enterprises but as national status symbols".

"Many countries in Africa need air services, not airlines," he once said. "Airlines are heavily capital intensive and are expensive to run."

Chikumba has also been an advocate for market-driven pricing, urging that "airlines must drive their costs down and the market must determine pricing."

But in an inflationary environment like Zimbabwe where inflation is close to 1 300%, he faces a tough battle to keep ticket prices stable.

Broadly, Chikumba has urged African airlines to aim for "truly global enterprises" and "eliminate national ownership limits".

He said: "Let airlines do like other industries do, access international capital markets and create truly global enterprises. Airlines should be free to merge and approach the international finance markets for capital.

"Globalisation must eliminate national ownership limits where they represent an obstacle to development. Certain states may wish to keep a golden share to make sure their national interests are taken into account."
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