HARARE – NetOne CEO Lazarus Muchenje was charged with eight counts of criminal abuse of office as well as fraud on Saturday.
Muchenje, arrested by the Zimbabwe Anti-Corruption Commission on Friday, is jointly charged with intercept, connection and roaming manager Tawanda Sibanda, 49, acting chief finance officer Tinashe Severa, chief technical officer Darlington Guru, 53, innovation and product development head Spencer Manguwa, 43, acting head for legal Tanyaradzwa Chingombe, and Sharmaine Kadenhe, a legal trainee.
The bail hearing continued into the evening.
Prosecutor Michael Reza opposed granting of bail, arguing that the suspects were people of means and likely to abscond because of the seriousness of the charges.
According to the prosecution, Muchenje committed the offences in cahoots with the other suspects on different occasions.
On another charge, it is alleged Muchenje, Gutu and Chingombe illegally contracted an international company without board approval.
“Accused one, four and six corruptly caused NetOne to enter into a contract with Bankai International Pvt Ltd of Mauritius and Brudgevoice INC, a company incorporated under laws of the United States of America, to sell NetOne airtime overseas by connecting Bankai to NetOne prepaid platform,” according to the charges.
Reza alleged Bankai was given 20 percent airtime discount which was above 11 percent discount the company was giving to its dealers.
It is also alleged Muchenje was getting an illegal housing benefit which saw NetOne losing US$363,875.
“Accused 2 represented NetOne as the lessor and Muchenje as the leasee. An arbitrary rental of US$1,000 was agreed by the parties although they had been advised by Pam Holding Properties and Kennan Properties that they rentals for the house in question was between US$2,500 and US$3,500,” charged Reza.
“As a result of this, Muchenje is enjoying an unjustified housing benefit for the period extending from January 2019 to January 2020 at the expense of NetOne Cellular.”
He said Muchenje did not seek board approval.
Muchenje also allegedly acquired personal security and misrepresented on documentation that the security was 24-hours at the NetOne building when in fact the guard provided security only to him.
“The first accused told Lifart Toro, NetOne head revenue assurance that he was being followed by strangers and required personal security,” said the state, adding he was not entitled to this arrangement.
Muchenje also allegedly hired top-of-range vehicles several times from Breakfront Car Hire prejudicing NetOne of US$225,925.
Muchenje denies wrongdoing.
The NetOne boss last month won a court order for his reinstatement after being suspended by the board in a raging boardroom battle.
