HARARE – Cotton Company of Zimbabwe (Cottco) board chair, Sifelani Jabangwe has moved to allay what could be stakeholder fears of a potential tailspin likely triggered by the siphoning of a whopping US$5 million from the state entity’s coffers in a shock procurement scandal by Zanu PF legislator Justice Mayor Wadyajena and four company executives.
Wadyajena, who chairs parliament’s agriculture committee, and his co-accused, have been charged with fraud and money laundering.
They were each granted ZW$100 000 bail by Harare magistrate Stenford Mambanje last week Thursday.
But in an apparent damage control gesture, Jabangwe said in a Wednesday statement, that operations were going on well despite the alleged plunder.
“The Board and Management of Cottco wishes to assure stakeholders of undisrupted business continuity in spite of the legal developments that were widely reported this past week.
“We are not able to comment on these developments as they are sub judice.
“A capable and experienced management team led by the Acting Accounting Officer, Mr Munyaradzi Chikasha, is overseeing the day-to-day operations of the business,” said Jabangwe.
The Cottco boss attributed this year’s decline in national cotton production to erratic rainfall, but expressed optimism that the sector would rebound in 2023 due to farmers’ renewed interest in cotton following the payment of their dues.
“Farmer payments have been progressing well with US$ 9.9 million and ZW1 billion having been disbursed to farmers to date.
“Ginning is in progress with lint allocations to local and export customers having commenced.
“Volumes are expected to have a marginal increase due to a small crop under hybrid seed,” added Jabangwe.
Wadjajena and his co-accused are accused of defrauding Cottco of US$5 million through fictitious purchase of goods ostensibly for use by the government-owned firm.
The crew allegedly established a local company that was identical to a Mauritius company in order to obtain orders for Carbon Bale Ties to be used by Cottco.
According to court documents, Cottco never received the bales as agreed with the intended company, and the accused persons allegedly diverted the money for personal gain.
Some of the funds were reportedly used to import 25 trucks from a company in the United States called Giant Equipment in 2019 and 2020, according to prosecutors.
While the case is still being heard in court, ZACC on Friday seized Wadyajena’s fleet of 22 haulage trucks and two luxury cars, a Lamborghini and a BMW X6.
In the wake of the embarrassing accusations, the under fire politician tried to put up a strong face Tuesday boasting that authorities could strip him of every piece of wealth and he would return to his village of origin unperturbed.
