NetOne CEO Mushanawani Contract Non-Renewal Zimbabwe

• NetOne CEO Raphael Mushanawani's contract will not be renewed due to allegations of poor administration and disregard for corporate practices.
• Mushanawani is accused of shielding senior officials from accountability, including the head of supply chain.
• The NetOne board believes he is responsible for half of the company's current tax bill of US$28 million, which could have been avoided.
• Mushanawani allegedly went against a board-approved payment plan with ZIMRA and unsuccessfully appealed against NetOne's obligation to pay.

Raphael Mushanawani's tenure as NetOne CEO has come to an end due to allegations of poor administration and disregard for corporate practices. The state-owned mobile network and internet service provider has accused him of shielding senior officials, including the head of supply chain, from accountability. This decision follows a series of events, including Mushanawani's forced leave on January 13th and his subsequent attempts to secure political backing. Despite visiting President Emmerson Mnangagwa's Kwekwe Farm, Mushanawani was denied entry by state security personnel at Precabe Farm.

The NetOne board has cited a pattern of repeated departures from approved policy, board resolutions, and fiduciary reporting obligations as reasons for Mushanawani's non-renewal. A document obtained by NewZimbabwe.com highlights concerns over leadership and governance, stating that 'there is a set of observations that suggests a leadership problem and justifies serious governance, judgement, and performance concerns.' The NetOne board also believes that Mushanawani is responsible for half of the company's current tax bill of US$28 million, which could have been avoided. Furthermore, he allegedly went against a board-approved payment plan with ZIMRA and unsuccessfully appealed against NetOne's obligation to pay.

Mushanawani's non-renewal has significant implications for corporate governance practices in Zimbabwe. The case highlights the importance of accountability, transparency, and adherence to board resolutions and fiduciary reporting obligations. As NetOne struggles to meet its projected US$278 million 2026 revenue target, this development serves as a reminder of the need for effective leadership and good governance practices. Lawyers and compliance officers should take note of the potential implications of this case on their clients' or organizations' corporate governance practices.

Lawyers and compliance officers should watch for potential implications of this development on their clients' or organizations' corporate governance practices, particularly in relation to board resolutions, fiduciary reporting obligations, and leadership accountability.

Source: Original reporting via AllAfrica Zimbabwe