THE Rural Electrification Agency (REA)’s board is planning to sack its chief executive officer, Joshua Mashamba, as it seeks direct involvement in the management of the publicly-funded institution, the Financial Gazette has learnt.
This emerged as the board denied a report by this newspaper two weeks ago that it was fleecing the institution through monthly board meetings.
The move to fire Mashamba will be accompanied by wholesale demotions of all managers except one, as the Willard Chiwewe-led board seeks to consolidate its grip on the company.
The Financial Gazette has been reliably informed that apart from pushing Mashamba out, the wide-ranging changes would also see eight managers being demoted from managers to officers with reduced salaries, and scrapping of benefits such as pension, medical aid and other allowances.
The management positions which will be scrapped are those of finance, human resources, alternative energy technology, loss control, public relations, operations, corporate services and commercial.
Only the audit manager could possibly stay in that role, according to information obtained by this newspaper.
One source said the move would allow the board to run the affairs of REA “unfettered”, and board members have reportedly started drafting executive perks for themselves.
Mashamba has already announced the board’s position to staff.
The Financial Gazette understands that the REA board has not consulted the Minister of Energy and Power Development, Samuel Undenge, on the issue.
Apparently, there is a perception that Chiwewe considers Undenge too junior in the scheme of things in ZANU-PF.
Board members are understood to have acted against expert advice from company lawyers and are pressing ahead with the move as they are said to have already engaged a consultant to look into how they should reshuffle the State-owned firm’s executive.
The Financial Gazette has seen correspondence between the consultant and Christopher Shumba, the board member in charge of human resources.
The other board members, who include six REA provincial administrators, are Fungai Mbetsa (Manicaland), Josphat Jaji (Mashonaland Central), Midard Khumalo (Matabeleland South), Cecelia Chitiyo (Midlands), Felix Chikowo (Masvingo), Christinah Moyo (lecturer at Kwekwe Polytechnic College) and Mashamba.
Chiwewe has tasked Shumba to spearhead the planned changes.
Shumba told the Financial Gazette when contacted for comment: “The board is the one which is driving it and it’s a move we are taking to right size the organisation but for more details you can talk to the chairman (Chiwewe) who should be in a position to answer all the questions you are asking.”
Chiwewe said: “I will call you back because I am driving right now.”
However, Chiwewe did not return the call. His number was no longer available when the Financial Gazette later called him.
The move by the REA board has created apprehension among workers, who said the argument that the planned restructuring of management positions was meant to cut costs was a decoy as the board itself was the one milking the institution through unnecessary meetings for which they were claiming hefty allowances.
Each board member, according to information gathered by the Financial Gazette, is receiving 150 litres of petrol or diesel from REA every month, apart from allowances for monthly meetings which Chiwewe said were necessary in a press statement dismissing an earlier report by this newspaper.
Consequently, morale at the institution is said to have reached its lowest level.
There was a possibility affected executives could challenge the board’s decision in court, according to insiders who declined to be named for fear of victimisation.
Tensions have already escalated and fears are mounting that the board’s continued involvement in the day to day running of the company could paralyse the institution.
One source said the board chairman was so overbearing that instead of coming to Harare for appraisals, he was said to be in the habit of summoning Mashamba to Chiredzi whenever he wanted briefings.
Mashamba would abandon work to travel for such briefings, in the process undermining operations.
REA’s lawyers advised the board to retrench or buy-out the contracts of the affected managers to avoid costly litigation.
The board, however, declined the advice and sought counsel from its own consultant, also a lawyer based in Harare.
It is understood Shumba rejected a cheaper consultant who had charged US$2 500 for the work and settled for the one who charged US$5 850 to do the job.
REA was established in 2002 through an Act of Parliament. Its mandate includes leading the rapid and equitable electrification of rural areas in Zimbabwe.
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REA board plots ouster of CEO
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