A DISCIPLINARY tribunal has recommended the dismissal of suspended CMED (Private) Limited Fuels manager Brian Manjengwa for his role in the botched fuel deal in which the government transport agency was fleeced of $2,7 million.
NDAMU SANDU CHIEF BUSINESS REPORTER
Manjengwa was suspended in August to facilitate investigations into how CMED lost the money to a private oil supplier, First Oil. CMED is up in arms with First Oil after the latter failed to supply 3 million litres of diesel despite being paid.
First Oil had won the bid to supply fuel on the strength that it was offering the cheapest price per litre of $1,21 than three other suppliers — Comoil ($1,25), MAPS Petroleum ($1,26) and Sakunda Energy ($1,28) — despite making an unsolicited bid.
It, however, failed to deliver the fuel despite being paid.
The tribunal, chaired by Harare lawyer Mercy Gwaunza, found Manjengwa guilty of gross incompetence or inefficience in the conduct of “his work in that he failed to protect his employer through the inefficient due diligence that he conducted to establish that First Oil Company had fuel in Zimbabwe”, according to a 20-page judgment released on Friday.
Other members of the tribunal were Tapiwanashe Kujinga and Martin Simbi.
The tribunal found Manjengwa guilty of “wilful disobedience of a lawful order in transacting with First Oil which had no fuel inland in violation of the CMED board resolution which stipulated that bulk fuel be purchased from a company which had fuel in Zimbabwe”.
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In mitigation, Manjengwa said the transaction was the first of its kind and was done in haste. Manjengwa said he was guided by the managing director and the CMED board throughout the process in question. He said there were no purchasing procedures in place and the whole process was haphazard.
Manjengwa also argued that the release of the money to First Oil was in the course of the transaction which was cash up front.
Manjengwa argued that the matter was not a lost cause as CMED could still recover the money, adding that dismissal was not the only option available. He said the company had fallen victim to fraudsters. Manjengwa said he improved the Fuels department which was on the brink of collapse following his suspension. He argued that he had made efforts to recover the money and that he had been on suspension for 10 months “and this is punishment enough”.
In aggravation, it was submitted that that the offence was a serious one warranting only dismissal.
It was submitted that the loss had resulted “in retrenchment of 33 employees from CMED Fuels department. It was submitted that nothing had been recovered to date of the funds that were defrauded.
“The Disciplinary Tribunal found the aggravating features far outweighed the mitigatory ones. In particular, the financial prejudice resulting from the respondent’s [Manjengwa] actions was so substantial as to cripple the very department that he was in charge of, besides having a very serious financial impact on the whole company,” the Tribunal said.
“The funds had been borrowed and have not been repaid together with interest and costs even when CMED did not derive any benefits from them.”
It said Manjengwa’s “brazen defiance of the board resolution was directly responsible for the ensuing loss of the funds, and his whole conduct throughout the transaction smacked of recklessness”.
