After officially breaking News about The much anticipated NetOne forensic audit report, #MondayBlues can confirm that the audit draft report is certainly NOT what the doctor ordered.
While there were obvious specific issues that were expected to be unearthed and clarified from the forensic Audit, Shockingly most of them were not completely addressed.
Probably because a “witch hunt” was expected , the draft report presented to the Auditor General, Mrs Chiri fell short of the expectations, which in actual essence may change the outcome of the story for the recently suspended NetOne executives.
The future still hangs in balance for the suspended NetOne executives including CEO Reward Kangai who was supposed to exonerated or incriminated by the report, but it seems its now a matter of interpretation of the report, if this is going to be the only yard stick used to define their future.
The audit was centered on reviewing internal control systems, the integrity of the payment system, the accounting system, reviewing airtime distribution processes, assessment of the process of paying salaries and allowances, reviewing the process of acquiring base station sites and the engagement of third parties in site acquisition, the process of selecting suppliers as well as to review banking procedures.
Part of the critical components of the report, which failed to give clear answers only noted some facts which then need interpretation as cited in the standard include:
The audit revealed an alleged tax fraud involving a company known as Bopela owned by Zanu PF activist Agrippa Masiyakurima with the connivance of suspended managers.
The report also incriminates some silent ZanuPf figures especially that Zimbabwe Tourism Authority boss Karikoga Kaseke owed NetOne ($10 375), Zanu PF Chegutu MP Dexter Nduna owed ($8 585) and one David Chivandire ($28 000).
On selection of supplies, the report revealed that some contractors including Sectional Poles, Bopela, Macharawanda, Afrosoft and Redan were appointed in contravention of the State Procurement Board regulations.
It also revealed that NetOne extended $80 000 to Bopela to fund the construction of a base station.
Masiyakurima also constructed base stations at his two properties and that of his brother without clear authorisation from NetOne and was later advanced two year rentals to cover a family emergency.
While Reward Kangai during a parliamentary portfolio review has openly admitted that he was a shareholder at FirstTel Comments on the report also read
The report does not name the five top NetOne managers who owned Firstel Cellular and also glosses over circumstances surrounding the acquisition of shares by the executives.
It also does not say why the amount owed to NetOne ballooned from $8 million to $11 million when management took over Firstel Cellular.
“The whole idea was for NetOne, management to go and protect the interests of NetOne, but that debt continued to balloon from $8 million to over $11 million,” one official told The Standard.
“The management also repeatedly tried to persuade the NetOne board to write off the debt.”
The forensic report is also silent on another former service provider, Zelco Cellular which owes NetOne $15,3 million and was shut down in 2011.
“The audit process did not interrogate why millions of dollars were lost on the One Wallet platform which never realised the intended benefits due to poor services,” said officials from the AG’s office.
“The system was supplied by a company called Gemalto and is reported to have at one time demanded payment of $500 000 when its service had only generated $904.”
The forensic audit did not interrogate the current NetOne billing system where leakages running into millions were being experienced as a result of shortcomings, said another source.
NetOne management was also allegedly negligent by not timeously attending to statutory obligations resulting in the company being levied fines by Zimra in excess of $5 million.
Another official said contracts signed by suspended chief executive officer Reward Kangai which resulted in the company being prejudiced of millions of dollars were also not interrogated, including one with the National Railways of Zimbabwe where NetOne owes the parastatal close to $1 million.