An internal audit has recommended that former Hwange Colliery Company Limited (HCCL) managing director Thomas Makore should pay back $271 841,99 that he accrued in ‘questionable’ allowances, earnings and advances.
HCCL has been placed under reconstruction by the Zimbabwean Government after a number of corruption scandals that has put the company on its knees.
“Audit findings show that Mr Thomas Makore owes HCCL an amount of $271 841,99. This inslcudes cash advances not recovered, earnings without supporting documents and balance on motor vehicle loan.
“We recommend full recovery of the amount owed and that we stop any further payments to Mr Makore,” reads part of the audit report.
Makore was suspended last May on allegations of insubordination, bribery and mismanagement of the coal producer.
This was after he had a public spat with company secretary Allen Masiya, which led to the unearthing of underhand deals within HCCL.
The Government holds 37% shareholding in HCCL.
The Government placed HCCL under reconstruction last year under the care of administrator, Bekitemba Moyo of DBF Capital.
“When the results of Hwange Colliery Company were announced in June (2018), Hwange posted a net loss of $23 million but had said it was targeting to record a profit of $5 million for the year,” explained Mines and Mining Development Minister Winston Chitando at the time.
“This gave government warning shots that there is a big problem because the company had been making losses for years and had only returned to profitability in 2017.”
Presently, the majority of production at Hwange is being done by a Mota Engil and the colliery has failed to pay the contractor, owing the firm over $12 million.