Hwange colliery administrator cast doubt on the reliability of audit

Hwange Colliery Company administrator Mr Bekithemba Moyo yesterday cast doubt on the reliability of the external audit report done on the company pointing out that some of the issues raised are insinuations rather than facts. In an interview, he said that there is need to subject it (audit) to due processes including affording people implicated in the report an opportunity to respond in accordance with good corporate governance.

“Whilst I have seen the report and gone through the salient points, on the face of it there is no smoking gun. The report is replete with insinuations and is not based on facts which makes it difficult for us to place full reliance on it.

“As you know, the allegations need to be tested and the implicated individuals have a right to be heard which sadly is yet to happen. It is common cause that when we took over, the Company was hopelessly insolvent. As the administration we are firmly focused on turning around the fortunes of the business,” said Mr Moyo.

“Clearly we need to make sure we increase production and sales, particularly given that the contract miner though not fault of theirs decided to suspend operations, owing to the lack of explosives and USD working capital funding.

“We continue to make progress albeit limited, brick by brick we will rebuild this business. Certainly not easy, but doable. We would much rather focus on growing the business instead of being involved in politics.”

The audit was conducted by Ralph Bomment Greenacre and Reynolds and implicated several senior executives and former board chairman and now Mines and Mining Development Minister Winston Chitando, who is accused of making unilateral decisions.

Minister Chitando is on record as challenging the retrieval of minutes and supporting documents to show that he made unilateral decisions in awarding contracts during his stint as board chair.

“All I can say is that there is need to retrieve the minutes and supporting documents to prove that I made decisions on my own,” Minister Chitando told Parliament last year when he appeared before the Parliamentary Portfolio Committee on Mines.

Inside sources have also come to Minister Chitando’s defence arguing that when he was board chairperson he made decisions after consulting the entire board.

In the same hearing, the senior auditor, Mr Muza, asked for additional powers through invoking the Prevention of Corruption Act at a time he in fact had privilege to go through HCCL financial books raising eyebrows on his interest in the whole investigation.

Inductorserve Logistics a company that was alleged in the audit to have been irregularly awarded a tender to transport coal also expressed shock at the report.

“This is the first time we are hearing about such a story about our company. We can confirm that the whole fairy tale is false to the last word and we are available 24/7 to answer to any queries. But they were deliberate attempts to tarnish our image without talking to us for reasons best known to themselves._The Herald

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