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Thomas Makore

Oliver Kazunga, Senior Business Reporter
SUSPENDED Hwange Colliery Company Limited (HCCL) managing director, Engineer Thomas Makore, will face a disciplinary hearing over allegations of unethical conduct and insubordination, the board has said.

Acting board chair, Mrs Juliana Muskwe, yesterday said the company had suspended Eng Makore with effect from May 14, 2018, pending a hearing.

“The suspension is pending a disciplinary hearing whose outcome shall be communicated to stakeholders in due course,” she said.

“All stakeholders are further advised that during his suspension, Eng Makore is not authorised to transact or conduct any business on behalf of the company.”

In the interim, the company has appointed Eng Shepard Manamike to be acting managing director effective May 15, 2018, until further notice.

Earlier reports by our Harare Bureau indicated that the suspension of Eng Makore had been necessitated by allegations of impropriety that have emerged following a dispute between two company officials.

According to sources, Eng Makore was also likely to be charged with bribing the media to influence positive coverage of the state of affairs of the company yet reality on the ground reflects the opposite.

“The issue is really to do with insubordination and some improper relationships with some media houses. So, the suspension is to facilitate the investigation,” a board member, who requested not to be named on professional grounds, was quoted as saying.

HCCL has been in a loss making position for years despite a series of capital injections and loan advancements by Government.

The poor performance has resulted in a decline in workers’ welfare, which has prompted animosity between management and staff.

Early this year some spouses of HCCL employees staged demonstrations at the colliery demanding the sacking of Eng Makore, accusing him of corruption, a charge that he has since denied.

The beleaguered spouses have also demanded that all the outstanding salaries to the workers be settled. Last year, the High Court approved a scheme of arrangement, which allows Hwange to pay creditors, including employees’ outstanding wages and over time while pursuing a turnaround strategy.

The scheme of arrangement is anchored on improved productivity. Due to several challenges facing Hwange, the firm recently told Parliament that it required $500 million to fully recapitalise operations and working capital of $5 million every month to retain its going concern status.

Among other challenges, Hwange has legacy debts amounting to more than $350 million, frequent breakdown of equipment, and high production costs which were causing the company to fail to break even.

The firm has since pitched a plan to sell Hwange Town for $300 million so that among other obligations it offsets over $70 million it owes employees in salary arrears dating back to five years.

HCCL also remains in a shaky financial situation after reporting a $43,84 million loss in 2017 compared to $89.91 million in 2016. — @okazunga