Source: Gudyanga ordered unbudgeted payments, court heard | The Herald April 27, 2017
Fungai Lupande Court Reporter
Secretary for Mines and Mining Development Professor Francis Gudyanga ordered several unbudgeted payments from the Minerals Marketing Corporation of Zimbabwe (MMCZ), which he later disguised as dividends, the court heard yesterday.
Prof Gudyanga, who was a lone board member at MMCZ, was in court answering questions during cross-examination in the trial of the company’s acting general manager Richard Chingodza (41) and acting deputy general manager (finance and administration) Hannan Tongai Chitate (35).
Chingodza and Chitate are accused of swindling MMCZ of $625 226, 88 after awarding themselves unapproved allowances.
During cross-examination by Chingodza’s lawyer Mr Oliver Marwa, Prof Gudyanga was asked why he ordered that the company donate $60 000 to Kutama College’s centenary celebrations.
“Did you ask MMCZ if they afforded to pay such an amount,” asked Mr Marwa.
In response, Prof Gudyanga said if the company could not afford the donation, management would have said so.
“A letter to you has indicated that the company did not have the money and it is explaining the delay,” inquired Mr Marwa.
“The request was illegal and it cannot be supported by the Company Act or any Government statute governing public funds.”
In response, Prof Gudyanga said the request was not unique.
“It is part of the company’s corporate social responsibility,” he said.
But Mr Marwa said MMCZ was a public corporation and a creature of procedures and questioned the basis upon which Prof Gudyanga made the order for the donation to be made.
“You were a headmaster at Kutama?” asked Mr Marwa.
Mr Marwa then took Prof Gudyanga to task over a September 8, 2015 payment of $517 000 to Pedstock Investment.
“That matter involves classified activities involving stoppage of linkages in the mineral sector,” Prof Gudyanga explained.
“I am surprised that Chingodza, who is aware of the nature of the issue, decided to bring it to court.”
Mr Marwa asked Prof Gudyanga to elaborate on the nature of the payment and he said it was a special payment for the Mineral and Border Control Unit.
He later refused to comment any further.
Mr Marwa then asked him to confirm whether or not two payments of $500 000 and $375 000 were made to the same company in two months, to which Prof Gudyanga said it was correct.
He also quizzed Prof Gudyanga on an October 23, 2016 payment to a Government department which was disguised as dividends.
The trial continues today.