Home » Legal and Judicial Affairs » ZBC Top Five Illegally Pocketed U.S $6 Million, Audit Reveals

AN audit commissioned by the information ministry has shown that the struggling Zimbabwe Broadcasting Corporation (ZBC) was defrauded of US$6 million by its top five bosses.

Information minister Jonathan Moyo presented the audit which was conducted by KPMG Chartered Accountants to Parliament on Monday.

The audit fingers suspended chief executive Happison Muchechetere, Elliot Kasu (General Manager, Finance), Tazzen Mandizvidza (General Manager, News and Current Affairs), Allan Chiweshe (General Manager, Radio Services) and Ralph Nyambudzi (Head of Finance) as beneficiaries of the fraud.

“The audit found that the total prejudice to ZBC amounted to $24 968 647,18 and broken down as indicated — the board $274 486, the managers $6 724 322, 82,” Moyo told legislators.

“This is what the senior management, executive management pocketed unlawfully and unprocedurally and then statutory funds and interest instruments amounting to $15 538 658,41 and then there was some other prejudice arising from poor barter deals of $450 055.

“Broadcasting archival material which is a serious source revenue, there was prejudice to the tune of $419 346. Then there was the issue of the OB van pricing, overpricing it to the tune of $786 283 and $133 733 in sundry.”

According to the report, the five executives and board members enjoyed generous perks at a time the public broadcaster was failing to pay its general employees.

“At a time when ZBC was failing to pay its salaries between January 2013 and 31 December 2013, the top four management were withdrawing relatively significant amounts of money as salary aances as follows, Muchechetere $58 200, Kasu $50 985, Chiweshe $59 900, Mandizvidza $51 470,40 and Nyambudzi $64 947,” said KPMG.

“Allowances that were outside contracts included amenities and retention allowances that were paid to the executives from 2009 to 2013 as follows Muchechetere $400 895,92, Mandizvidza $254 452,71, Chiweshe $292 376,10, Kasu $292 376,10.

“The terms and conditions given to the four managers were quite generous in relation to the financial performance of ZBC as well as the general market conditions.

“No evidence to show that these contracts were approved by the board’s remuneration committee.

“Benefits given to the four executives were significantly different from other managers and staff. The top four executives’ (plus Nyambudzi) remuneration amounted to $6 132 403, making up 10 percent of the total staff costs of $59 944 025.”

Moyo instituted the audit following to dissolution of the board which was led by Cuthbert Dube and the suspension of Muchechetere in December 2013.

On Monday, the minister said criminal proceedings were underway against some of the managers.

MUCHETERERE’S PAY PACKAGE

Basic salary of $15 000

Retention allowance of 50 percent of basic salary,

Amenities allowances of 35 percent of basic salary

Entertainment allowance of 20 percent of basic salary

100 percent medical aid contribution cover by ZBC,

Annual bonus plus a quarterly performance-related bonus of 12,5 percent of annual basic salary upon meeting set targets,

S350 Mercedes Benz and a Toyota Land Cruiser that he was entitled to buy if he left ZBC,

$3,500 housing allowance while his housing mortgage of $195 624 was taken over by the organisation.

OTHER MANAGERS

Basic salary of $11 000,

Retention allowance 50 percent of basic salary

Amenities allowance 35 percent of basic salary

Entertainment allowance 20 percent of basic salary

Source : New Zimbabwe

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