SUSPENDED CMED managing director Davison Mhaka has been summoned to appear before a disciplinary hearing on August 28 facing charges of incompetence and theft or fraud over the $2,7 million botched fuel deal involving a private supplier, First Oil.
CHIEF BUSINESS REPORTER
Mhaka was sent on indefinite paid leave on August 7 after the company allegedly lost the money after First Oil failed to supply three million litres of diesel despite being paid by CMED.
But, in a letter yesterday, CMED board chairman Godwills Masimirembwa said Mhaka’s suspension conditions had been reviewed and would, with effect from today, no longer be entitled to salary and benefits.
Mhaka faces charges of defying a board resolution that bulk fuel should be purchased from a company which has the fuel inland.
In defying the board order, Masimirembwa said Mhaka had opted and “proceeded to deal with First Oil Company which clearly exhibited that it had foreign partners without advising your principal, CMED board”.
“You did not satisfy that First Oil indeed had the fuel at Msasa,” Masimirembwa said.
“This disobedience to a lawful order resulted in actual prejudice to CMED to the sum of $2,7 million.
Alleged theft or fraud charges against Mhaka stem from that he had acted in concert with First Oil to defraud CMED.
Mhaka is charged with colluding with First Oil and “deliberately conducted a fraudulent and fake due diligence and defrauded the company of $2,7 million”.
Mhaka faces charges of gross incompetence by awarding a tender to a company without a valid import licence and not on the list of suppliers approved by the State Procurement Board.
“In the interim, we hereby demand and advise yourself to immediately surrender all company assets in your possession in particular motor vehicles and laptops to the Human Resources Executive at CMED head office,” Masimirembwa said.