Mbada fires top executive

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MBADA Diamonds has fired its chief administration officer Major Mahlangu for allegedly failing to liquidate a debt of over R200 million owed to one of its suppliers, Gecko.

PAIDAMOYO MUZULU

Impeccable sources at the diamond mining company said Mahlangu was fired last weekend after the Zimbabwe Revenue Authority (Zimra) early this year garnished the diamond miner’s bank accounts for failing to remit taxes.

“Mahlangu, the chief administrator, was fired on Sunday last week through an email that was copied to all senior staff over the manner in which the company has failed to settle its R200 million debt to Gecko,” the source said.

However, Mbada corporate communications executive George Manyaya denied the reports.

“None of your allegations are true,” Manyaya said in a terse email response last week.

Mahlangu becomes the second high profile official to leave the firm in a huff after chief executive officer Patience Khumalo left under unclear circumstances in March this year.

Khumalo is daughter to Mbada Diamonds board chairman Robert Mhlanga.

“Mahlangu was fired and this is related to failing to make sure that the company paid Gecko as was agreed with Zimra when the company’s bank accounts were garnished earlier this year. Mbada owes Gecko R200 million and $247 000 for withholding taxes,” the source said.

The source added: “To date Mbada has only been able to repay $100 000 to Gecko.”

Mbada accounts were garnished twice by Zimra in the past eight months after the firm failed to pay its taxes to the tax collector.

The diamond miner has of late been struggling financially and recently slashed its workers’ salaries by 50% in order to stay afloat.

Zimra in March issued a second garnishee order on Mbada accounts held with BancABC for the second time. The garnishee order was for $22 442 683,22.

Sources close to the matter said it related to withholding tax pertaining to transactions between the diamond miners and Gecko Company.

Mbada acknowledged the tax liability but argued its tax issues were handled at the highest level and the government was aware of the developments and that there was an agreement that the firm paid their taxes in advance to assist the cash strapped government.

Other documents in our possession also showed that Mbada in November last year had its accounts garnisheed over tax liabilities.

BancABC head of operations Martha Muhwati on November 22, 2013 wrote an internal circular 189/2013 to all branch managers, team leaders, relationship managers, banking operations centre, credit operations and corporate banking on the Zimra order.

“We advise having received Zimra garnishee orders on the following clients: Diamond Mining Corporation $5 559 235,41; Mbada Diamonds $132 606,53 and Mbada Diamonds ZAR128 518 628,02,” Muhwati wrote.

8 COMMENTS

  1. The chickens are coming home to roost. Marvellous is the daughter of the company’s board chairman? Nepotism? If only relatives were employed during the goodtimes, who will come to their rescue during that dark period. People should learn that employment should be on technical know how and not on technical know who. It may not be surprising that most of the employees and boadmembers were Obert Mpofu’s relatives.

  2. So the former chief executive, Marvallous is the daughter of the board chairman. Was this appointment done in a transparent manner or was similar to the diamonds revenue? Mbada is sinking because it looks like it was technical who and not technical how. Yeah, the chickens are coming home to roost.

  3. What shall we say about these things. This is what get from Nepotism. How can can you take someone with no mining experience and make her a CEO of a mine? It defies logic.

  4. Mbada’s scenario echoes the general corporate governance failure witnessed in most state institutions

  5. I hope they will give her a big severance package as that is a tough job and hopefully they will have a new position set aside for her quickly. She certainly deserves to be well compensated for helping Zimbabwe’s elite with their diamond sales. It just seems wrong that Zimbabwe’s elite should have to pay taxes on the loot, as it will only encourage people to do things that are “illegal” and then that could taint the excellent standing Zimbabwe enjoys in the world.

  6. This is what I call self imposed sanctions, the country’s economy could have picked from the diamond revenue but the real saboteurs placed the best destroyers in the system.
    This is all that is left and the well positioned have bought cars, mansions and taken funds abroad. Then what next…Zimbabwe will be a colony 2017, the fallen heroes have been dismally failed. I cry I cry cry. This is very pathetic.

  7. nepotism and corruption are simply rife within this current gvt.The president himself has hw many relatives working in the various ministries,to begin with?…to a point where even opposition party leaders are also related to him….Mbada is run by the gvt itself,stop wondering about where that money went to,we all know where!!

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