The pitfall of weak corporate governance in public entities is reportedly stalking one of the country’s biggest minerals parastatals, the Zimbabwe Mining Development Corporation (ZMDC), whose mineral portfolio is worth over $200 billion.
ZMDC is a mining entity with a statutory mandate to invest in the country’s mining sector.
It is also charged with coordinating and implementing mining development projects on behalf of the state.
With such a big responsibility, astute corporate governance structures are expected to drive operations but revelations made to the ZBC News tell a sad story of failed governance.
Allegations are that interference by board members has seen the state entity failing to fully utilise its capacities, with indications being that the David Murangari board has had three different general managers inside four years.
According to information gathered by the ZBC News, the state enterprise had Mr Jerry Ndlovu as the General Manager and he left in 2014 before Mr Sydney Simango was engaged on a substantive basis and sacked during the same year, 2016.
While reports indicate that the board is at the moment looking for a substantive General Manager, one board member, Mr Luke Akino is currently acting as the General Manager.
Despite its huge mineral portfolio, the company has an Acting Chief Finance Officer, Acting Corporate Secretary and an Acting Chief Operating Officer, a development that has not gone down well with many of its trading partners, considering the need for the organisation to attract investment.
Accusations have also been raised over the board’s failure to execute its mandate which has led to closure of operations at Sabi Gold Mine, Lynx Mine in Karoi and Jena Mine, which is on the brink of collapse while the reported Kamativi investors have become elusive.
Contacted for comment, ZMDC Board Chairman, Mr David Murangari defended his board, saying they are working flat out to keep the organisation afloat and confirmed that they are in search of a substantive general manager.
Indications also point to the fact that ZMDC last published its financial statements six years ago, while its performance is being outclassed by artisanal miners who are under-mechanised.