US$2m housing scandal at ZBC | The Herald

US$2m housing scandal at ZBC | The Herald

via US$2m housing scandal at ZBC | The Herald January 29, 2014

SUSPENDED ZBC chief executive officer Happison Muchechetere and three senior managers are embroiled in a multi-million-dollar double-dipping housing scandal which sources described as a looting spree over the past four years.The four unprocedurally set up a housing scheme with mortgage guarantees from CBZ Building Society supported by US$1,3million deposited by ZBC in an investment account.

And though the scheme was approved by then board chairman, Dr Cuthbert Dube on May 5 2010, it was done without the knowledge or approval of the board.

The funds deposited by the ZBC management exceeded the threshold allowed for execution by the corporation’s staff without the approval of the board.

The agreement for the controversial housing scheme was illegally signed by general manager (finance) Mr Elliot Kasu who has no power to authorise such contracts.

In terms of the ZBC Purchasing Policy, the CEO is empowered to authorise financial transactions of up to US$50 000 without Board approval, while from US$50 000 to US$300 000, the purchase would have to go through the State Procurement Board.

Under the scheme, Muchechetere was awarded US$250 000, while Kasu, Allan Chiweshe (general manager radio programming) and Tazzen Mandizvidza (general manager news and current affairs) all got US$200 000 apiece, the scheme totalling US$850 000, to buy houses in the northern suburbs.

The four contracts, under “Housing” provided for the service of the mortgages at CBZ by ZBC at 100 percent for Muchechetere, who did not have an account with the bank and thus used the ZBC account to pay off his mortgage, and 50 percent apiece for Kasu, Chiweshe and Mandizvidza who had accounts with the bank from which deductions towards servicing the mortgage were made.

Despite purchasing plush properties with ZBC funds, the four continued drawing monthly executive housing allowances that stood at US$3 500 for  Muchechechetere and US$2 500 for Kasu, Chiweshe and Mandizvidza, giving a cumulative US$1 808 666 over the past four years.

The allowances were only stopped after the intervention of the Ministry of Information, Media and Broadcasting Services in November that culminated in the dissolution of the entire ZBC board, suspension of Muchechetere and Kasu, and the payment of workers’ outstanding salaries.

The four are also under fire for their hypocrisy in that throughout the seven-month period when their subordinates went without salaries, at times getting as little as US$40 for bus fare, Muchechetere and his three general managers made a pretense of freezing their salaries while nicodemously raking in thousands of dollars every month in allowances.

Records show Mr Muchechetere got his US$9 300 every month broken down as US$3 500 housing allowance, US$2 400 for security, US$3 000 entertainment allowance, and US$400 for domestic workers while the three general managers were also paid their US$5 300 in allowances broken down as US$2 500 for housing, US$2 400 for security and US$400 for maids without fail.

Bishop Trevor Manhanga, who sat on the board, confirmed that the housing scheme was never brought to the board’s attention as the chairman, Dr Cuthbert Dube, had made it clear that the issue of conditions of service for the CEO was his business.

“That was never brought to the board, and the board turned down a budget for 2013 which included luxury vehicles for the management. The decision regarding conditions of service for the guys was the chairman’s business,’’ he said.

Another board member, who preferred anonymity said the 2013 budget included a new Mercedes Benz S350 and Land Cruiser for the CEO even though his current fleet was basically new.

Efforts to get comment from Mr Muchechetere were unsuccessful as his phones went unanswered.

COMMENTS

WORDPRESS: 5
  • comment-avatar
    wako 4 years

    Arrest all of them.

  • comment-avatar

    They cannot arrest these looters including the ring leader Mr Dube because the nation would know the real truth behind all this mess.Only in countries like Malawi they take corrupt officials to court because they care about the suffering masses.
    If our government was serious about putting to an end this looting they could have already involved the anti-corruption squad to investigate these embarrassing cases of looting at the expense of the poor masses,instead they make them retire with full terminal benefits.There is no way a chairman would tell his board members that only him alone makes the decisions without the support from higher authority in the relevant ministry.The board members are appointed by the minister not the board chairman,therefore as aboard members they are answerable to the minister.The nation need answers from the relevant ministries,why these things happened.
    This behaviour will lead to more corruption and bad name for Zimbabwe internationally.It might take years but the real truth will come out one day because light is stronger than darkness.

  • comment-avatar
    Tapuwa Mukuruvambwa 4 years

    Goodwills Masimirembwa s’ case is dead ,buried and forgotten.Same same all these matters coming up.

  • comment-avatar
    shelton mlambo 4 years

    My big question is that MDC-T was in government holding the Finance portfolio and our Prime Minister was like the executive over seeing all those ministries, how on earth can those thing would not have been picked up and exposed.Audits what are they Auditing in Government department if they are really Auditing.

    How much other executives are doing the some, still getting packages

    This a governance challenge on our two political parties- in particular to MDC-T, I don’t mention ZANU-PF because its part of the Party Structure to retain corrupt officials.

    Slash a salary to USD60 000 its still to much – to the most R 7000.

    State forfeiture must come in and take every thing from those crooks and lock them up.

    Our president must pass a state of emergency using his powers state takes everything.

  • comment-avatar
    Chatunga 4 years

    Webster Shamhu is the architect of this rot