via Cottco CEO dipped fingers in company till | SW Radio Africa by Tichaona Sibanda December 16, 2013
The chief executive officer of the Cotton Company of Zimbabwe (Cottco), David Machingaidze, ran the company into the ground while plundering it.
The Sunday Mail reported that he spent close to US$800,000 on the police, magistrates, prosecutors, politicians, journalists, churches and chiefs to ‘oil the system’ without the board’s approval.
Under Machingaidze’s watch, cotton production dropped from 350,703 tonnes in the 2011-2012 season to 121,964 in 2012-2013, representing a 62 percent decline.
The paper said Machingaidze also spent US$250,000 to pay undercover investigators to snoop on the firm’s employees.
He had a petty cash limit of $40,000 but ended up siphoning off US$761, 000 between April 2012 and September 2013. The payments made through his office were concealed from the board and never reported.
Under Cottco’s code of conduct, the actions are dismissible offences. A damning report is in possession of the board, who have recommended that Machingaidze undergo disciplinary action.
However, there appears to be attempts to protect him as AICO, Cottco’s parent company, has recommended that he be awarded an exit package. This is however being resisted by the board who want him dismissed.