$20m unaccounted for at Hwange, board mum on explosive report

HARARE - Hwange Colliery Company Limited (HCCL) is sitting on an explosive forensic report detailing a number of financial and procurement irregularities, which allegedly occurred under Deputy Mines minister Fred Moyo’s watch.

Despite promising to look into the issue of “legacy debts” running back to 2007 in its December 2012 annual report, the Zimbabwe Stock Exchange-listed miner’s board has failed to provide indications yet on what it has found out or discovered through its forensic audit.

“The company remained troubled by legacy debts accumulated over the past five years. These debts have been subjected to a forensic audit and when verified, a comprehensive plan to discharge the liabilities will be put in place,” HCCL’s chairman Farai Mutamangira said in the report.

In the absence of Mutamangira, the company’s managing director Jemester Chininga yesterday declined to comment on the issue, saying he was in meetings.

However, businessdaily can reveal that a January 2013 BCA Consulting report had noted that nearly $20 million was unaccounted for at the western Zimbabwe miner through questionable supply deals, which Moyo — the then MD — was aware of.

These unrecognised liabilities and possible prejudices, included an $800 000 payment to Muntucap Associated Carriers for the “transportation of coking coal” to the Democratic Republic of Congo,
Alki Logistics and a near $1 million acquisition of second-hand rigs from Drill Resources (Private) Limited.

According to the hard-hitting report, there were instances of double-payment and invoices amounting to $6,3 million — and belonging to Otto Simon — were not captured in HCCL’s accounting system.

Even though the company was wracked by poor cash flows, suppliers such as Bruno Enterprises were beneficiaries of advance-payments and often handed contracts to supply “maize meal, sugar beans and protective clothing”.

Meanwhile, the company suffered a $3,2 million after-tax loss in the half year to June 30 — due largely to burgeoning  debts that have seen the company provisioning them at $150 million.

Efforts to secure comment from Moyo were unsuccessful yesterday, as his mobile phone was unreachable.

 

Comments (8)

I hope deputy Minister Moyo is not involved in any skullduggery here. Hwange women were beaten up yesterday for demonstrating for their husbands' salaries. Where is our leadership's sense of charity and fairness..Have they not heard of one Brother Juniper whose duty was to provide some comfort to the poorest of Rome's forgotten parish who after being robbed of these alms he had collected for same during one of the coldest nights in Rome. Brother Juniper is said to have chased this thief with great spirit and on catching up with him, he gave him his scarf telling the confused fellow.."Please take this scarf and make sure you do not catch a cold, it is a very cold night"...Now how is this for charity. Now contrast this with the way we treat our poor, if we can not starve them we beat them to a pulp as what happened in Hwange...and this has been happening with the WOZA women, the railways women and so on..Where is our collective national shame????

gutter poet - 8 October 2013

Gutter, how come we only see comments in prose, and never some poetry from you. Live up to your moniker

Big Easy - 8 October 2013

I find it funny how everyone ignored Nick Van Hoog when he was undertaking his shareholder activism. He mentioned it a long time ago that there were gross irregularities at both Hwange and RTG. How on earth do these kinds of things happen at listed entities? Where is the Securities Exchange Comission? Where are the auditors? Is it any question why we are failing to attract capital? All we seem to attract as investors are shady Mafioso/Triad types. Hameno, all I know is I won't put a single red penny on that bourse

Fatso - 8 October 2013

@Big Easy- Interesting concept..let me see what we can do about that. Thanks anyhow!

gutter poet - 8 October 2013

Interesting to note that there is state interest in Hwange. David Whitehead Textiles was closed and executives were arrested at the instigation of the likes of Synx Mahlamvana, David Mangota and collegues because they were hoped to milk some money from the company assets. The state security was highly used, with meetings taking place in the office of the them Defence Minister, with Webster Shamu the main player. The late Master of High court summoned to ensure to trying to force him to implicate directors in non-existing crimes. The company remains closed, with the people of chegutu, kadoma and Gweru suffering. Militala, a form 4 graduate with some certificates in insolvency given mandate to turn around the company, it was a joke and still remains one of the biggest jokes. Without change of leadership in our beloved country, be guaranteed things will only become worse. Cry my beloved country, cry.

David whitehead Textiles - 9 October 2013

Interesting to note that there is state interest in Hwange. David Whitehead Textiles was closed and executives were arrested at the instigation of the likes of Synx Mahlamvana, David Mangota and collegues because they were hoped to milk some money from the company assets. The state security was highly used, with meetings taking place in the office of the them Defence Minister, with Webster Shamu the main player. The late Master of High court summoned to ensure to trying to force him to implicate directors in non-existing crimes. The company remains closed, with the people of chegutu, kadoma and Gweru suffering. Militala, a form 4 graduate with some certificates in insolvency given mandate to turn around the company, it was a joke and still remains one of the biggest jokes. Without change of leadership in our beloved country, be guaranteed things will only become worse. Cry my beloved country, cry.

David whitehead Textiles - 9 October 2013

Its people like Fred Moyo who embarrass our President. After our President shows confidence in you and entrusts you to be a deputy minister of such a big portfolio, wobva wanyadzisa kudai.. I hope and pray you are not guilty comrade Moyo because munganyadzisa vana ve Zvishavane

Simbarashe Zhou - 13 October 2013

I agree..... this cabinet is supposedly made up of people the President believes will take the country forward despite the sanctions... It would be sad to discover that some of them are involved in such corruption....Let us hope the drama unfolds with no fear or favour... Surely the people who elected him will be disgusted by such developments

Lenox - 13 October 2013

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.