HARARE – Coal miner, Hwange Colliery Company Limited (HCCL) says it has suspended two senior board members effective October 4, 2018 on allegations of mismanagement of funds.
Early this year, HCCL also suspended its managing director Thomas Makore on allegations of “insubordination and corruption”.
“The company advises that it has suspended its Acting Managing Director, ( Shepard Manamike) and the Executive, Finance and Administration (Mr Tawanda Marapira) with effect from 4th October 2018.
Hwange said it had witnessed unethical business practices characterized by financial improprieties, particularly unauthorized expenditure from the top management. “The circumstances are unaccepted especially when the company was focused on production and sales. Due to the unauthorized financial transactions, the company failed to meet its key obligations due to its creditors and employees,” said the company in a statement
The company is currently sitting on a stockpile of 345 000 tonnes which it says is easily convertible to revenue of around $13 million) to enable it to address its short term challenges.
“It is unacceptable that with such stock the Company fails to meet its financial obligations,” group’s acting board chairperson Juliana Musikwe said.
The Ministry of Mines is still to appoint a substantive board.
Musikwe said the company is working hard to address the temporary impediment that has caused poor performance. “However, this is just a temporary setback occasioned by substandard performance within management structures, which the board assures all stakeholders it is on course to address and restore normalcy,” she said.
Musikwe said the board is entrusted to protect the interest of the company and preserve investor value.
The mantra under the “new dispensation” is zero tolerance to corruption.
“HCCL is strategic to the national economy and cannot be prevented from becoming a successful concern on an account of substandard performance, she added.