ENERGY and Power Development minister Zhemu Soda yesterday set himself on a collision course with the PetroTrade board which he suspended for allegedly interfering with the company’s daily operations and tender processes.
The board, which was suspended on Wednesday for alleged
corporate governance malpractices, has threatened to escalate the matter to
President Emmerson Mnangagwa.
Soda, however, said he was unfazed by the threats and
challenged them to go ahead.
Tenders in question are in respect of the construction of
two service stations whose value was a combined US$8 million, but were said to
be worth US$1 million.
The statement suspending the board read: “While the board
of directors for PetroTrade was appointed in terms of section 11 of the Public Entities
Corporate Governance Act, with the concurrence
of His Excellency the President of the Republic of Zimbabwe, I have,
today, 9 March 2022 suspended the entire board, pending investigations, into
matters of corporate governance.”
Soda said he will soon appoint a team to look into the
matter, whose findings will then inform the way forward.
Last year, the board clashed with management amid reports
the board had halted controversial and costly contracts awarded to suppliers
without due diligence.
In one of the cases, PetroTrade management allegedly
approved the purchase of vehicles, as well as the construction of two service
stations at higher prices than prevailing normal market rates.
Asked to specify the charges, Soda said he could not divulge
details as the issue was under investigation. It would be preemptive to tell
you the issue of the violation. I think to us it’s enough to say there are some
investigations around corporate governance issues.
“It would be preemptive to give some details when we have
indicated that we have engaged a team that will do investigations. You see
people will always have ways of defending themselves,” he added.
He said there were institutions in places where fired board
members could report, such as the Zimbabwe Anti-Corruption Commission).
“Our governance structure is very clear, they can go and
make their complaints as well, they are allowed,” he said.
Board members, who spoke to NewsDay Business said
they had acted responsibly.
They said they trebled the company’s market to 8% and grew
sales from two million litres a month to at least four million litres a month.
The suspended board members are Tinomudaishe Chinyoka,
Zanele Dube, Simbarashe Mhuriro, Gladys Mumhure, Ferida Matambo, Lilian
Timveos, Getrude Marabada, Godfrey Ncube and
Dakarai Mukuku. Newsday
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