HARARE – The National Pharmaceutical Company (NatPharm) acting managing director Newman Batanayi Madzikwa has landed in the dock after he allegedly hiked medicines prices without following procedures.

Madzikwa, 40, was mentioned as the beneficiary of nepotism in the arrest of former Health Minister David Parirenyatwa accused of criminal abuse of office last month.

Harare magistrate Rumbidzai Mugwagwa freed Madzikwa on $200 bail on Monday.

Madzikwa is also accused of handpicking a Danish company to supply medicines worth over $10 million without going to tender.

The state alleges that he is not the lawful director for NatPharm and got the position through an unlawful directive to NatPharm board by Parirenyatwa.

After being appointed, Madzikwa allegedly breached set principles about procuring of medicines and price variations.

The court was told that when there is need for price variations, consultations should be made with the NatPharm management committee and board which then recommend and seek approval from the Ministry of Health and Child Care.

Madzikwa allegedly directed his financial manager Rolland Mlalazi in a management meeting held on September 3, 2018, to effect an 11 percent hike of the handling fee from 4 percent to 15 percent.

Acting upon the directive, Mlalazi wrote a letter to the IT manager, Zealous Nyabadza, to affect the price hike effective September 3.

Prosecutors said this compromised accessibility of basic drugs to consumers.

On the second count, it is alleged that Madzikwa, sometime in August this year, acted contrary to his duties as an accounting officer for NatPharm.

He allegedly handpicked a Danish company, MissionPharma, to supply medicines worth $10 million without going to tender.

The state said he acted unlawfully.

Sebastian Mutizirwa appeared for the state.