So last week he was charged with contravening the Public
Finance Management Act before Harare regional magistrate Taurai Manuwere.
He was released on US$100 bail and remanded to June 6. It
is alleged that in October last year, when Mr Muchineri was still with the
council, he wrote a letter seeking a mutual termination agreement. The letter
was presented to the board by Mau Mau and on November 29 an extraordinary full
board meeting resolved to pay Mr Manuwere the requested gratuity.
On the same day, Mau Mau wrote to the Minister of Lands,
Agriculture, Fisheries, Water and Rural Development and the Minister of
Finance, Economic Development and Investment Promotion notifying them of the
terminal benefits that had been agreed by the board.
On December 14, Mau Mau told the council’s annual general
meeting about the mutual separation between the council and Mr Muchineri. But
there was no agreement on the payment of the gratuity as required by Section 21
of the Public Entities and Corporate Governance Act.
It is the State’s case that the board members who attended
the AGM did not make up a quorum as needed under the Corporate Governance Act
to ratify a resolution.
On December 29, Mau Mau wrote to the two ministers giving
them further notification on the terminal benefits payable to Mr Muchineri.
But on January 2 this year, before the two ministers
responded or approved the payment in accordance with the Corporate Governance
Act, Mau Mau entered into mutual termination agreement contract with Mr
Muchineri thereby making a significant financial decision with neither the
Government’s written approval nor ratification by the board.
The gratuity contract for the outgoing chief executive
provided that 70 percent of the payment would be in United States dollars and
30 percent in local currency. This was contrary to the corporate governance
circular on blended remuneration which authorised public entities to pay
employees a maximum of 40 percent of gross remuneration in US dollars. Herald
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