Zimpapers Logo

Harare Bureau
SUSPENDED Allied Timbers Zimbabwe chief executive Joseph Kanyekanye has denied corruption charges raised against him and has accused the company’s chairman of usurping executive authority and “acting wrongly with insufficient facts.” Kanyekanye alleges that the decision by chairman Emmanuel Fundira to suspend him was misguided and politically motivated. He also made sensational claims, accusing Fundira of succumbing to pressure from some senior government officials whom he alleges had directed the chairman “to get rid” of him.

Allied, wholly owned by the government, is under the Environment, Water and Climate Ministry.

Kanyekanye was suspended on January 16 to facilitate investigation into his conduct, which borders on corruption, failure to observe operating procedures and gross insubordination. Prior to his suspension, he was on forced leave since December 10.

The chairman said because of his failure to follow operating procedures and company policies, Kanyekanye’s actions caused substantial loss, harm or prejudice to ATZ.

It was also alleged that Kanyekanye extended unauthorised, unvetted and unsecured credit valued at $8.4 million to “related parties”, which remain unrecovered.

Further, it was established that Kanyekanye exceeded the $20,000 limit which he was permitted to buy items for capital programmes without going to tender and were overpriced.

The former Confederation of Zimbabwe Industries president has since lodged his grievances with the Ministry of Labour and Social Welfare (the Department of Labour Administration.)

“I’m willing to defend these allegations notwithstanding your unethical perspective of leaking them to the press,” said Kanyekanye in a letter to Fundira.

“These allegations are largely your personal, politically motivated repudiation of board approved strategies and programmes that predominantly worked well to establish the company from a paper concept to a viable operation. It’s inevitable that one or two schemes may fail, but there’s absolutely no corruption or acting in bad faith.

“I also note that almost all issues you raised were subjected to a previous forensic audit by BDO who found no conflict of interest, no preferential treatment or prejudice to ATZ.

“A similar forensic audit by Proctor in Botswana does not agree with your observations and conclusions on Botswana.” The board says the unrecoverable debts for Botswana amounts to 31 million pula. Allied used to export timber to Botswana.

Fundira said his board was working “purely” on information that has exposed some managerial deficiencies. He added Kanyekanye alleged misconduct has resulted in him failing to meet shareholder expectations as outlined in his contract.

“From the board’s perspective, we believe there were serious managerial improprieties which have occurred and from a business point of view, it is crucial to take action,” he said.

“The shareholder makes demands based on deliverables outlined in a contract and if one fails to perform to expectations, the board will be left with no option but to action procedurally.”

However, Kanyekanye declares Fundira’s “political motivated scheme” would fail.

It is alleged Nhema, the former Minister of Environment, was supplied with treated poles. The money is yet to be paid and might not be recovered because it is unsecured.

In grievances lodged to the Labour Officer, Kanyekanye said the treatment he was getting from the board was unfair and violated conditions of his employment contract.

On his forced leave, Kanyekanye said the move had no basis at law and his conditions of service. He said the letters did not cite any relevant section of conditions of service, employment contract, and code of conduct or labour relations Act.