HARARE – A decision to raise drugs handling fees by the National Pharmaceutical Company was above board and designed to ensure the state drugs merchant remained viable, a court heard on Tuesday.
Natpharm managing director Newman Madzikwa is on trial charged with criminal abuse of office for “unlawfully hiking the drugs handling fee.”
Madzikwa took the witness stand in his defence on Tuesday and told magistrate Hosea Mujaya that the fee increase was done with approval from the Natpharm board as well as health ministry.
Madzikwa was put to his defence after Mujaya dismissed his application for discharge.
“We met as management and deliberated on the issue. We reached an agreement that hiking by 11 percent would make the organisation reach breakeven point. We took it up to the finance director before we approached the board with our position,” he testified.
“The board was impressed and they gave us the greenlight. They said our presentation was the best and clear.”
Madzikwa said after the board’s approval, they approached the ministry of health’s levy committee which also approved the idea before they the issue back to the Natpharm board.
“They (board members) said they had never encountered such a well-prepared document. They were highly satisfied before they allowed us to go on,” Madzikwa said.
Natpharm was on its knees, he told the court, with the government owing the company millions of dollars.
Madzikwa was acquitted by Mujaya on a second count in which he was accused of corruptly awarding a $10 million tender to a Danish medicines supplier.
Through his lawyer Harrison Nkomo, Madzikwa said the allegations against him were fabricated to bring him down. He said that the evidence exposed divisions and disharmony within Natpharm management.
The case was postponed to June 19 for judgement after prosecutors file their closing submissions by June 5 and the defence by June 11.
Zivanai Macharaga is prosecuting.
