NetOne mess sucks in rival Econet
By Respect Gwenzi, Aug 08, 2018
HARARE (EA NEWS)- In light of the escalating tensions at NetOne, the country’s second largest telco operator, embattled former CE Reward Kangai who was also unceremoniously dismissed has claimed that rival Econet, is partly to blame for the gravitating crisis at NetOne.
His assertions expressed over his twitter feed on Tuesday, claimed that NetOne has failed to clear its boardroom through privatization because of the sole shareholder’s reluctance as well as a lobbying by Econet which stopped a possible 49% shareholding sale to MTN of South Africa.
Kangai’s remarks came in the wake of a debilitating crisis at NetOne which emerged following the firing of 9 executives by the CE, a move which was later reversed by the board on the instigation of minister presiding over the parastatal.
Aiming further higher, the CE responded by filing a court case against the minister and the main board alleging gross meddling with day to day affairs of the company, a prerogative of the executive. In a further counter move, the minister through the board has since suspended the CE barely a year since his appointment in 2017.
His fate as well as that of NetOne hangs in the balance amid a lukewarm financial performance stretching over 6 successive years to the present year. Bluntly NetOne has failed to report a profit over the 6year period and in 2017 the loss position more that trebled against the prior year.
Kangai was responding to a suggestion by one Twitter user that NetOne and other parastatals could speed up their recovery and corporate governance through privatization.
In an opinion piece Equity Axis had earlier highlighted the need to liberalise parastatals through privatization. This will not only ensure capitalization but proper structures that gurantees solid corporate governance.
It remains tempting as it stands for corrupt government officials to resort to the cooky jar for solace and this move is completed through patronage as all parastatals report to parent ministries.
On assuming office in 2017 Mnangagwa pledged to restructure parastatals through privatization and rationalizations so as to stem fiscus bleeding. In 2016 a report by the Office of the President highlighted that $270 million was cumulatively lost through parastatals which is estimated at 7% of the respective year’s budget.
NetOne falls under the ICT ministry which is headed by SupaMandiwanzira, a character not so new to controversies and allegations of fraud.
In one of the cases Minister Mandiwanzira was alleged to have caused NetOne to flout SPB in the awarding of a contract to Megawatt Energy and the subsequent payment of $4 million in consultancy fee to the same firm. ZACC however went on to acquit the minister of any wrong doing.