ZESA Holdings executive chairperson Dr Sydney Gata has been
suspended and will not be allowed to enter the power utility’s headquarters,
Energy and Power Development Minister Fortune Chasi said yesterday.
He said Dr Gata would be barred from Zesa premises until
due processes have been completed.
“Our initial stance as Government was to observe corporate
governance and give the board an opportunity to deal with the matter. This
entailed giving the board time to investigate the serious allegations against
Dr Gata.
“But alas! He (Dr Gata) decided to lock the board out of
Zesa premises. He took the view that no board meetings would take place as a
way to stall progress. He then proceeded to bar the board entry into Zesa
premises and ordered security to lock them out,” he said.
“He refused to accept the letter of suspension and instead
proceeded to suspend the entire board as if he had the powers to do so. He
doesn’t. It is very strange and unusual action suggesting that something was
seriously wrong”.
As a consequence, Minister Chasi said, processes are
underway to ensure normalcy is restored at Zesa.
“This will include barring Dr Gata from Zesa for a defined
period to allow the investigations to happen. We want to be very procedural and
need to.
“We will continue to assume that he is innocent until
proven guilty. He needs to make it easy for us, otherwise the irrational
actions he is taking — like firing fellow board members — will cause everyone
to think otherwise,” he said.
Dr Gata is facing a slew of allegations that include
abusing the power utility’s five pool vehicles, scuttling the disciplinary
hearing of a top executive and splurging $10 million on Christmas parties and
procedurally sending four consultants to South Africa at Zesa’s expense.
Minister Chasi described the corruption allegations as
“egregious and very worrying” and called for a thorough board investigation.
Government has since called for a thorough and expeditious investigation into
the allegations.
Minister Chasi wrote to the Zesa board of directors on
Monday ordering them to expedite the probe.
The letter was copied to Deputy Minister Magna Mudyiwa,
Chief Secretary to the President and Cabinet Dr Misheck Sibanda, Secretary for
Energy and Power Development Dr Gloria Magombo and Dr Gata himself.
But Dr Gata has been defiant. He claimed that his lawyers had advised him to stay put
because a meeting that was held to suspend him was unprocedural.
He has since responded to Minister Chasi objecting to the
processes that led to his suspension, and now wants the matter to be
adjudicated.
“It is clear from the foregoing that I respectfully take
the view that your letter in casu ought not be the basis of the way forward
between you (as the line Minister) and the Executive Chairman. I believe this a
matter that requires, on an urgent basis, the mediation role of the Office of
the President and Cabinet. I will engage that mediation role without delay.”
The Zimbabwe Energy Workers Union (ZEWU) seems to be
fighting in Dr Gata’s corner.
In a statement released as a “special communiqué to all
Zesa staff” last week, Dr Gata claimed to have suspended the other eight board
members.
He claimed some external forces were instigating workers to
strike, presumably to force him out of office.
There were, however, questions on whether he had the power
to dismiss board members.
Zesa is a private company wholly-owned by the Government
and is bound to operate in terms of the laws that govern it, namely the Public
Entities Corporate Governance Act, Companies and Other Business Entities Act,
and the Public Finance Management Act.
Under the Public Entities Act, Government is mandated to
exercise strong interest in the affairs of a public entity including financial
performance, reporting and accountability arrangements.
Where deviations are noted, the Government is obliged to
take remedial action in terms of the law.
The laws also demand accountability, including the declaration
of interest by officials of the company. Sunday Mail
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