Published: 4 hours ago

NetOne Cellular (Pvt) Ltd Chief Executive Officer, Raphael Mushanawani (60), has been granted bail of US$500 after appearing in court on allegations of fraud involving over US$1.2 million.

Mushanawani, who serves as both Group CEO and Accounting Officer of the state-owned mobile operator, appeared before Harare Magistrate Marewanazvo Gofa on Wednesday. Despite opposition from the State, the magistrate ruled that Mushanawani was not a flight risk.

"He is employed and a man of fixed abode," Magistrate Gofa said.

Under the bail conditions, Mushanawani must surrender his passport to the clerk of court and is prohibited from interfering with State witnesses.

The complainant in the matter is NetOne, represented by its Board Chairperson, Engineer Taurayi Maurukira.

According to the prosecution, in 2022 NetOne initiated a procurement process to replace its SAGE 1000 system with a new Enterprise Resource Planning (ERP) system. The tender, valued at US$2,422,500, was approved by the board and awarded to Farevic Systems (Pvt) Ltd for the supply and implementation of a SAP system.

Prosecutors allege that while the Farevic project was underway, Mushanawani, allegedly in collusion with other NetOne managers yet to be arrested, devised a scheme to misappropriate company funds. He is accused of misleading the Executive Management Committee and the board into approving a separate contract with Lunartech Solutions (Pvt) Ltd worth US$257,600 for an upgrade of the SAGE 1000 system, which was already being phased out.

The prosecution further alleges that Mushanawani signed multiple addendums, inflating the project's cost to US$1.2 million. To date, NetOne has reportedly paid Lunartech US$654,331.60 without board approval.

In addition, Mushanawani and his alleged accomplices are accused of entering into a consultancy contract with Diztech valued at US$79,467.49, despite the services already being covered under the original Farevic contract.

As a result, NetOne is said to have been prejudiced by US$654,331.60, with a potential further loss of US$625,135.89.

Mushanawani is expected back in court on October 22 for his routine remand.
- NewZimbabwe

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