KEY POINTS
- NetOne CEO accused of inflating contracts worth $1.2 million.
- ZACC says he made the payments without board approval.
- Case adds pressure on Zimbabwe’s state-owned firms.
The Zimbabwe Anti-Corruption Commission (ZACC) arrested NetOne’s chief executive officer, Raphael Mushanawani, on Monday over allegations of fraud involving more than US$1.2 million.
Authorities accuse the state-owned mobile operator’s boss of secretly inflating technology contracts and authorising payments without the board’s knowledge or approval. He is set to appear before the Harare Magistrates’ Court on Tuesday.
Parallel deals spark probe
According to investigators, the case dates back to 2022 when NetOne awarded Farevic Systems a US$3.5 million contract to replace its ageing SAGE 1000 system with a new Enterprise Resource Planning (ERP) platform.
While that project was still in progress, Mushanawani and chief technology officer Christopher Muchechemera allegedly contracted Lunartech Solutions to upgrade the same SAGE 1000 system at a cost of US$257,600.
ZACC says Mushanawani later signed two more addendums with Lunartech, which pushed the upgrade cost above US$1.2 million even though the system was already marked for replacement.
Unapproved consultancy payments
Investigators further allege that Mushanawani struck another deal with Diztech and authorised US$79,467 in payments for consultancy and training services already covered under the Farevic Systems contract.
ZACC said he carried out the transactions without approval from NetOne’s executive committee or board of directors.
Mounting scrutiny of state firms
The arrest highlights intensifying scrutiny of Zimbabwe’s state-owned enterprises, which have faced long-running concerns about procurement fraud and mismanagement. NetOne, the country’s second-largest mobile operator, has been dogged by governance disputes and financial losses in recent years.
Finally ZACC has pledged tougher action to restore transparency in public institutions, warning that executives who bypass controls will face prosecution.
