ED fires ZESA boss

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ENERGY minister Joram Gumbo has fired ZESA Holdings chief executive Josh Chifamba, who was on suspension over suspected corruption, after consultations with President Emmerson Mnangagwa.
This comes as Cabinet on Tuesday agreed to restructure the national power utility into a “single vertically integrated company”.
Gloria Magombo, the Energy ministry permanent secretary, on Tuesday told the ZESA board that Mnangagwa had sanctioned the termination of Chifamba’s contract, according to a letter seen by The Financial Gazette.
“The office of the President and Cabinet has, upon consultation by the minister, concurred with the board’s decision. You may therefore proceed to fanalise the matter in line with Chifamba’s contract and internal procedures, as well as corporate governance principles,” she said.
In terms of the Public Entities Corporate Governance Act, boards of State entities have the power to fire chief executives with the approval of the President.
ZESA had last year suspended Chifamba, along with 14 other senior executives, to pave way for a forensic audit into the affairs of the parastatal.
This came after Chifamba, along with Zimbabwe Electricity Transmission and Distribution Company managing director Julian Chinembiri and finance director Thokozani Dhliwayo, appeared in court charged with criminal abuse of office.
The three were accused of involvement in corrupt deals with an Indian company, PME, for the supply of transformers. The deals were reportedly worth $35 million.
The trio is also accused of having picked Fruitful Communications to provide media services to the parastatal without following tender procedures, leading to the payment of $23 750 for radio talk shows.
The company is jointly owned by broadcaster Oscar Pambuka and former ZANU PF legislator Psychology Maziwisa. The two are currently appealing a High Court conviction on the matter.
Chifamba also came under fire last year over various cash donations made by ZESA to the ruling ZANU PF party at a time the company was recording huge losses.
Chifamba told the then Paurina Mpariwa-led parliamentary committee on Public Accounts that he had no choice but to make the donations to the party.
Auditor-general Mildred Chiri’s 2016 audit report showed that ZESA had budgeted to use $300 000 for donations during that year, but ended up spending $1,1 million after making unauthorised handouts.
Chifamba told the committee that the donations were made following directives from the parent ministry.
“According to the ZESA Act, I am not allowed to do so, but I might end up doing so because if you are a ruling party, you are funded,” Chifamba told the committee last year.
l Meanwhile, Labour minister Sekai Nzenza has withdrawn the appointment of Farai Tichawangana from the new National Social Security Authority (NSSA) board amid indications he was still on suspension at ZESA.
Tichawangana, a finance director at ZESA Enterprise, is among 16 top officials who were sent on forced leave in October last year to pave way for a forensic audit.
Nzenza told The Financial Gazette that there was a slip-up resulting in Tichawangana’s name being included in the new board. “I had withdrawn the name but it was too late to remove it from the press release,” she said.
Tichawangana was seconded to the pensions administrator to bring expertise in financial and ICT management.
The new board is chaired by Cuthbert Chidoori.