The Managing Director of Netone, Mr Reward Kangai exclusively told TechnoMag that the state owned enterprise had unearthed fraudulent activities milking the entity of millions of dollars with some rogue elements in the legal systems creating loopholes for the criminals.
By Phinias Shonayi
In an interview, Mr Reward Kangai said NetOne has managed to identify criminal activities which have been going on unnoticed by some of its management and disappointed at the way the law enforcers were lenient to some of the criminals allowing them to regain freedom, a case that may be tied to mass corruption.
In November 2012, BCA Forensic Audit Services compiled a confidential report revealing that NetOne Bulawayo Region had been defrauded on various occasions. Several employees were implicated in the crime, and among them Wellington Dodzo, a regional sales representative.
Mr. Dodzo who began his employment tenure with NetOne in March 2011 was hired while on bail facing criminal charges of 30 counts of theft from Delta Beverages in Bulawayo (ZRP Bulawayo Central CR 285/5/09 and CID Fraud Bulawayo DR1615/09).
He committed several breaches of the law against NetOne in Bulawayo. The outstanding amount from stock account arose from USD190 205 on 31 October 2011 up to USD852 796 as at 31 July 2012 the audit highlighted.
“He was in the practice of collecting cash from dealers and vendors without issuing receipts, and would not remit some of the cash to the NetOne offices.” revealed the report.
From the Jason Moyo shop in Bulawayo, Dodzo took recharge cards for distribution to dealers and vendors worth USD465 148. “Mr Dodzo cannot account for the stock. He created fraudulent documents to try and camouflage the stock shortages.”
The company’s policies and procedures were not being followed and the account manager was aware of the occurrences yet allowed the practice to continue by not taking corrective action.
NetOne suffered great losses as vendors were allowed 15% commission on consignments other than the tabled 10%. NetOne saw a USD416 520,70 setback in this regard. As a result of their seeing NetOne’s mismanagement, the vendors went on to personalizing funds meant to be reimbursed to NetOne.
BCA also noted that the identification of dealers and their registration in some cases was not done according to company policy. Such companies as Nature Peak were allowed to do business with Net One unlawfully.
The Regional Manager at the time is among those accused of mismanagement and misappropriation of funds. During his tenure, the consignment balance increased to USD1 602 718 from USD743 636,25.
Chances of retaining the money from the dealers are slim because stock was issued without issuing delivery notes, hence there is no proof of deliveries.
Sums of money ranging between USD300 and USD20 000 were also detected during the audit.