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Harare Bureau

Hwange Colliery Company administrator Mr Bekithemba Moyo yesterday cast doubt on the reliability of the external audit report done on the company pointing out that some of the issues raised are insinuations rather than facts.

In an interview he said that there is need to subject it (audit) to due processes including affording people implicated in the report an opportunity to respond in accordance with good corporate governance. 

 “Whilst I have seen the report and gone through the salient points, on the face of it there is no smoking gun. The report is replete with insinuations and is not based on facts which makes it difficult for us to place full reliance on it.

“As you know the allegations need to be tested and the implicated individuals have a right to be heard which sadly is yet to happen. It is common cause that when we took over, the Company was hopelessly insolvent. As the administration we are firmly focused on turning around the fortunes of the business,” said Mr Moyo. 

“Clearly we need to make sure we increase production and sales, particularly given that the contract miner through no fault of theirs decided to suspend operations, owing to the lack of explosives and USD working capital funding.

“We continue to make progress albeit limited, brick by brick we will rebuild this business. Certainly not easy but doable. We would much rather focus on growing the business instead of being involved in politics.”

The audit was conducted by Ralph Bomment Greenacre and Reynolds and implicated several senior executives and former board chairman and now Mines and Mining Development Minister Winston Chitando, who is accused of making unilateral decisions. 

Minister Chitando is on record challenging the retrieval of minutes and supporting documents to show that he made unilateral decision in awarding contracts during his stint as board chair.

“All I can say is that there is need to retrieve the minutes and supporting documents to prove that I made decisions on my own,” Minister Chitando told Parliament last year when he appeared before Parliamentary Portfolio Committee on Mines. 

Inside sources have also come to Minster Chitando’s defence arguing that when he was board chairperson he made decisions after consulting the entire board.

In the same hearing, the senior auditor Mr Muza, asked for additional powers through invoking the Prevention of Corruption Act at a time he in fact had privilege to go through HCCL financial books raising eyebrows on his interest in the whole investigation.

Inductorserve Logistics a company that was alleged in the audit to have been irregularly awarded a tender to transport coal also expressed shock at the report.

 “This is the first time we are hearing about such a story about our company. We can confirm that the whole fairy tale is false to the last word and we are available 24/7 to answer to any queries. But they were deliberate attempts to tarnish our image without talking to us for reasons best known to themselves. This is unacceptable,” said Inductoserve public relations manager Mr Alexio Gwenzi.

The senior auditor Mr Muza acknowledged that he has neglected to interview the directors of the company.

The audit report has raised a lot of dust with insiders alleging that the now disbanded Hwange board chairperson Mrs Juliana Muskwe hand-picked the external auditors without following due process.

“The Hwange case has always been a difficult one. There have been a lot of accusations and counter accusations between management, the previous and current boards and individuals accused of being on a path to tarnish and fix each other,” said a board member who did not want to be identified.

“There is strong suspicion that the disharmony between the disbanded board led by Mrs Muskwe and most of the individuals implicated in the audit emanates from the fact that there were irregular financial transactions that the board entered into and were in a rush to conclude the deals before being ousted.”