NetOne ex-CEO urges probe into Telecel deal

NetOne's former CEO, Reward Kangai, has written to new president Emmerson Mnangagwa appealing for the Telecel deal to be investigated, New Zimbabwe reported. Kangai alleges that the deal was meant to deceive the public whilst facilitating a shareholding for former First Lady Grace Mugabe and ICT Minister Supa Mandiwanzira. 

Kangai claims that the government's purchase of Telecel, initiated by Mandiwanzira at a time when government already owned 100 percent of NetOne, cannot possibly have been in the interest of Zimbabwe and its citizens. It had failed adequately to capitalise the company, he said.

In a letter dated 27 December 2017 to President Mnangagwa, Kangai said under the POTRAZ chairmanship of Ozias Bvute, USD 10 million of funds from Universal Services Fund (USF) were used as part-payment of 60 percent share-holding in Telecel.  The remaining USD 30 million came from the National Social Security Authority (NSSA). According to Kangai, the NSSA insisted on having a shareholding in Telecel after that payment, but Mandiwanzira was against that, so NSSA was reimbursed its USD 30 million through the USF.

According to Kangai's letter, Telecel has suffered a significant drop in both market share and revenue, since its acquisition by the government. According to Kangai, his former company, NetOne, has registered the lowest Average Revenue Per User (ARPU), "a reflection of the dismal failure of the current management".

Kangai is making efforts to force corruption investigations against Mandiwanzira by the Zimbabwe Anti-Corruption Commission (ZACC) and has since written to the Prosecutor General. Mandiwanzira has dismissed the allegations, saying they came from a "discredited", "angry" and "corrupt" former NetOne employee.