NetOne scandal: Mandiwanzira hits back

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Information and Communication Technology (ICT) minister Supa Mandiwanzira

Information Communication and Technology (ICT) minister Supa Mandiwanzira yesterday said a forensic audit instituted by the parastatal to probe NetOne is almost complete, warning suspended chief executive officer, Reward Kangai against hoodwinking the public by raising “frivolous” allegations to evade investigations against him.

BY XOLISANI NCUBE

REWARD KANGAI
REWARD KANGAI

Kangai appeared before the Parliamentary Portfolio Committee on Information Communication Technology on Monday where he accused Mandiwanzira of interfering in the operations of the State-owned telecommunications company and corruptly awarding a $4 million contract to a Chinese firm to audit a deal between NetOne and Huawei.

But, Mandiwanzira, who is currently in Brazil on government business, said Kangai should not have been afforded the platform to raise the allegations, as he was under probe.

He said Kangai’s presentation was an attempt to divert and pre-empt the audit currently underway.

“I’m surprised that a CEO, who is on forced leave to pave way for a corruption probe at NetOne by the Comptroller and Auditor-General through PWC, could be granted such rare opportunity,” Mandiwanzira said.

“I am aware that the Parliament hearing and other activities that I have ignored are meant to pre-empt the audit report and intimidate the auditor. These cheap efforts shall not succeed.

“I am informed that the forensic audit report is less than 30 days from being finalised.”

In his presentation to the committee, Kangai alleged that Mandiwanzira led a dirty smear campaign against him, including planting stories in the State media.

He claimed Mandiwanzira had underhand dealings with Li Xiaodong, a CEO of a Chinese company, Megawatt Energy, which was tasked to investigate whether Huawei had not overcharged on the $248 million base station project in 2012.

He also alleged that Xiaodong’s firms jointly own a property in Woodmead, Johannesburg, with Mandiwanzira’s company, Blue Nightingale.

The firms trade as Megawatt Energy, LXD Group and C SEEC South Africa.

The property was reportedly bought for 4,5 million rands in cash.

But Mandiwanzira yesterday said: “In order not to play into the hands of those behind the shenanigans, I shall be issuing a robust and comprehensive statement on the scurrilous allegations levelled against me – only when the audit report is out.”

24 COMMENTS

  1. Kangai and other three executives have so many cases to answer. He and his colleagues were the Directors of a company which is failing to pay Netone 11million. Netone has a marketing department so what was the purpose of contracting their company to market Netone products. It seems as if Newsday you want to cover up for Kangai, im surprised in few days to come you want to hoist ant-graft seminar. In this case you promoting corruption.

    • Ndozvinoita kugarisa apposition one for a long time, especially by ‘special’ appointment. You pollute the air and soil yourself without anyone noticing until the time when you are forced to go. We wait for the big scandals when our dear President vacates office. They shall surely come out…

  2. Newsday is a newspaper and has right to publish any story. It has not taken any sides in publishing the story. We the public have heard Mr. Kangai’s story, good. Lets wait for the Minister’s comments and then the final statement will come from our FAITHFUL Auditor General Mrs Chiri.

  3. Newsday, fear not. You are free to public this story. Why is the Minister hurt in this story? Let Kangai say his part. And Mandiwanzira is free to also what he wants. Then our faithful Auditor General Commissioner Mrs Chiri will have final report. I trust this God-fearing woman. She says as it is. So don’t worry Mandizwanzira. You are not above Parliament. Let the Parliamentary Committees do their job. Who are you to tell them not to interview Kangai?

  4. what is Ozias Bvute doing at POtraz, he is Supa’s friend and Owes Potraz Millions of Dollars, Supa is an overnight rich person since he became minister!!

  5. Minister vari corrupt ava and he knows Kangai is saying the truth in as much he has his on issues at NetOne. u are on a looting spree Crd, u forced the telecomms regulator to buy you a Nissan Infinity, one of its kind, you forced all parastatals within your control to fund your victory ceremony in Nyanga, you are always interfering with the operations of POTRAZ. The Ozius Bvute guy that you made the Chairman of POTRAZ, you know very well comes from Met Bank, the same bank that owes POTRAZ monies to the tune of over $6 million. Surely how can a straight minister do such a think if you have the ICT sector at heart. You have decided to frustrate or fire anyone whom you think derails your plans to loot. The reshuffles you did at the regulator all point to someone who want to have his pple in management so that you can steal very well. On this one i hope and pray the president act very quickly on this issue. You have a big case to answer sir musade kuvhunditsira vanhu, muri mbavha.

  6. Most right-thinking people now know the corrupt nature of Supa. It is not a coincidence that Sibusisiwe Ndlovu,an appointee of the minister, is the one bringing false allegations. Let them investigate so that these things are laid bare. Then they can investigate these corrupt appointments.

  7. mmmmmmm l can smell a rat pano.Bvute ku POTRAZ?nyika ino ine corruption vakona.if l hd right Kangai was talking of being harrased by Supa cz Netone attached property ye Metbank of which Bvute has interests ku Metbank kwacho.mmmmmmm zvakutoda vakuru vanofamba na Jesu

  8. The paper has only reported on what was said before the parliamentary portfolio commitee and Supa ‘s response.Is that taking sides…no !

  9. At least NewsDay you are giving us a balanced position, both sides of the story.Lets hear what the minister is saying about the allegations being levelled against him. On the issue raised by Subaltern, government is the one that sold a stake to Kangai and his team and should not be an issue that they should raise today. Cosmos Cellular & zellco failed to pay NetOne and those issues died natural deaths.Now that Firstel is failing to pay as well, this simply means the model of service provider was not sustainable from the word go. On the other hand Kangai & crew should have foreseen the governance pitfalls that they were facing despite that he says he declared his interests.There are certain transactions that no matter the extent of safeguards you take you remain conflicted, hence he should have refused the offer of shares. It also applies that the minister may not be a suitable person to deal with allegations against Kangai given issues raised against the minister himself.

  10. The minister’s tone suggests undermining the parliamentary portfolio committee which is very unfortunate on his part. If what Kangai submitted is not fact, the minister should give evidence that proves he is not involved with Megawatt. It also interesting that the minister admits to having hired Megawatt , is it not proper that this should have gone through the Auditor general like what the current forensic audit has been subjected to.Did Megawatt go through a tender process? Ummm something stinking

  11. They are both thieves and corrupt. Corruption in Zimbabwe at its highest level. Todiniko nhai weduwee.

  12. Bvute is at PoRTRAZ & Mutandiro is brought to NetOne after a short stint at Portraz.Supa usadaro. The Mutandiro guy was fired from TelOne and Supa brings him to NetOne. Chii chachinja paari nhasi. Bvute presides over business of a creditor who wants to recover money from an entity where he, Bvute chairs.This kind of incest is rotten.Minister this flies in the face of good corporate governance.

  13. On another hand the people doing background checks & advising the President are doing the nation and HE a disservice.How can you fail such glaring conflicts.HE now looks he condones this rotten culture. Kusaziva here or there is a motive in such appointments? Supa if its a learning curve, ummm yours is bad

  14. NetOne, a State-owned enterprise and Zimbabwe’s second largest mobile operator by subscriber numbers recorded a gross profit of $34,6 million in the first quarter of 2016.

    According to BH24, these figures were shared by NetOne’s acting CEO, Brian Mutandiro while addressing the Parliamentary Committee on ICT.

    In the same review period NetOne registered $48, 5 million in revenue, which is an improvement from the $44.3 million registered in the first quarter of 2015. The positive performance could mark a rebound for the operator that recorded a $3 million loss in 2015 which was led by a $5.8 million loss in the first half of the year.

    These numbers put NetOne’s daily revenue for 2016’s first quarter at an average of $538,888 per day. In his address, Mutandiro mentioned how NetOne’s average daily revenue now stands at over $300,000 a day up from $250,000 a day at the beginning of the year.

    NetOne has enjoyed significant growth in the past year and a half in terms of network expansion and subscriber numbers. At the beginning of the year, it had 4,1 million active subscribers which represented an 8.8% increase from the totals in the third quarter of 2015.

  15. This story was only covered by the Herald today. It is no secret that the Ministers, Perm Secs and parastatal bosses are on a scandal warpath and both parties are not clean either. It is correct that the story of all parties must be heard and paliamentary committee did the right thing as the public are entitled to hear all. Supa you have too many scandals from the Ruveneko , Flag guy and now the Kangai one. Dzakumomotera although it is now public knowledge that all Ministers and Senior government employees are now above the law judging from what has been reported over the past two months and considering that no action has been taken against anyone of the said individuals.

  16. Brian Mutandiro is a very good manager..The reasons he was fired at Tel One is non other than only encouraging workers to put maximum effort in their work and in turn promising them fare treatment in terms of remuneration when ever the set targets were met..This did not go down well with the government as Tel One employees were regarded as enemies of the state and preferred to use the revenue to mitigate loses made by some parastatals and who knows what else.As for Supa hhhhhhh .

  17. These guys are thieves. Recently there was a whatsapp conversation on social media that Supa was demanding his ransom from facilitating a contracting deal in a Huawei project. His loot was close to half a million. Thieves . All the ministers and perm secs superindenting over parastatals are looting left , right and centre. But then , THE CHIEF LOOTER does nothing. He just keeps the records in his locked cabinets until the culprit behaves in an ”unpatriotic” manner. Tiri pa tight. These people condone corruption as long as it is done uner the Zanu pf banner. Kangai also looted under that banner, Supa is a bloody looter. Isu tisina peku looter tisu tofa hedu nenzara. Maihweeeeeee

  18. Its good for the people of Zim now tht these pple are singing like canaries, providing potential evidence of unacceptable conduct by our so called leaders, evidence which would otherwise have not been availed to the public. One only hopes that justice prevails in the end and we all give glory unto God Almighty…

  19. Most of you here don’t know the inside story. Some of us were in the know months before this came out. I have been involved in this case for a long time so know the inside story.

    Kangai is completely innocent and has not misappropriated even 1 cent of NetOne money. He is in trouble because the minister told him to pay $4million to a company in which the minister has an interest. Kangai said it was against the law and refused. The minister wants Kangai out of NetOne so he can put his own people in there to loot NetOne. The CIO know this. The police know this.

    The only reason why Kangai has been given an opportunity to present his case to the Parliamentary Committee is because he went directly to the top, to the President and told the President what is happening.

    We should support people like Kangai who make a stand against corrupt ministers who use their power to force their subordinates to break the law and prejudice the country of its revenue only to benefit themselves.

    Corruption is what causes Zimbabwe to be one of the poorest countries in the world when it could be one of the richest. It causes deaths among children from hunger, malnutrition and lack of medicines. It denies young people of their rightful opportunities. It makes Zimbabweans beggars in the world. Officials who are corrupt are enemies of the country and should be shot by firing squad.

    Thank you Kangai and others like you who have been brave enough to stand up for truth, even against the odds. In any half decent country the police would now follow the leads given by Kangai and investigate the allegations themselves. Why don’t the police know that this corrupt minister is already under investigation in South Africa for purchasing property in cash, circumventing taxes, and why don’t the police know that this corrupt minister has purchased property in South Africa jointly with the director of the company into which the $4million was to be paid from NetOne? Come on…

  20. Minister has ignored parliament. That house of representatives for the people. He ignores that house! But he had to be an MP before he could be appointed minister. Get it? He slept pa bonde during campaigns. Bribed people and rigged Zanu style and Nikuv to get the parliamentary seat. Now, he’s too big to worry about responding to a parliamentary inquiry.

    These are the crooks. Your crooks, who get in to steal and spit at the people with the only approval they need…yaRobati!

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