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Suspended CMED boss bounces back

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Government has ordered that suspended CMED boss Davison Mhaka be reinstated amid indications the panel that conducted a probe into allegations of fraud against him was wrongly constituted.

Government has ordered that suspended CMED boss Davison Mhaka be reinstated amid indications the panel that conducted a probe into allegations of fraud against him was wrongly constituted.

By XOLISANI NCUBE

The move comes as a company at the centre of a $3 million fuel scandal, First Oil, has alleged that a former Cabinet minister, CMED board members and officials at a local bank were the core suspects in the alleged defrauding of the State transport company.

Transport minister Joram Gumbo yesterday confirmed that he had directed the CMED board, led by Godwills Masimirembwa, to reinstate Mhaka as the managing director for the parastatal, but would not reveal the reasons why he did so.

CHIEF-WHIP-JORAM-GUMBO

“Yes, it’s true. I have directed he be reinstated, but I will need time to explain the reason I did so,” he said, adding he had an urgent meeting to attend.

But insiders said the manner in which the board had handled the issue forced the government to reinstate Mhaka, as it emerged that the tribunal that considered the matter allegedly had a working relationship with Masimirembwa during his previous portfolios.

Mhaka was sent on indefinite paid leave on August 7 last year after CMED allegedly lost $3 million after First Oil failed to supply three million litres of diesel despite being paid in advance.

“The board has been fighting wrong people. It knows who stole the money and the people at ZB Bank, who connived with an ex-Cabinet minister to defraud CMED, but the board has been fighting Mhaka and First Oil,” the source said.

Masimirembwa was not answering his phone when sought for comment.

Insiders said the board has authorised the procurement of fuel from a firm linked to the ex-Cabinet minister, the same politician who is accused of having sanctioned the prejudice of CMED. Charges against Mhaka included colluding with First Oil and “deliberately conducting a fraudulent and fake due diligence and defrauding the company of $2,7 million”.

Mhaka faces charges of gross incompetence for awarding a tender to a company without a valid import licence and was not on the list of suppliers approved by the State Procurement Board.