Union demands NOIC CEO probe
THE Zimbabwe Petroleum and Allied Workers Union (Zipawu) has approached the Zimbabwe Anti-Corruption Commission (Zacc) imploring it to investigate National Oil Infrastructure Company of Zimbabwe (NOIC) chief executive officer, Wilfred Matukeni over allegations of maladministration.
The Noic boss also faces allegations of corruption and poor corporate governance, according to a letter seen by Standardbusiness.
Matukeni last week referred questions to his spokesman, who said: “He doesn’t want negative publicity at the moment. I don’t know how we can do it”.
But in a damning document dated 3 May 2022 addressed to Zacc, Zipawu said a forensic audit was likely to uncover shocking mismanagement.
Zacc spokesperson John Makamure confirmed receiving the document.
“We are going to adequately look into the matter,” Makamure told Standardbusiness.
In the paper, the union said fuel expands and contracts depending on temperatures.
They said when temperatures increase, fuel expands and when temperatures drop it contracts.
They said in the past, there was a system to gauge loads to determine the actual quantity of fuel dispatched, which gave accurate loads.
“This (system) ensures that the clients get the actual quantities and potential losses or gains are recorded. Matukeni changed this system from 2010. He instructed that temperature is only checked once in the morning, midday and at 1600hrs in the main tank. At loading, fixed temperatures will be used between 0800hrs and 1200hrs, between 1200hrs and 1600hrs and between 1600hrs and 2000hrs,” the document reads in part.
“This means most clients were being short-changed and Noic would record huge gains or surpluses at the end of the month. It is well established that this surplus would be directed to some companies for personal benefit. All other clients would be seriously short-changed in the process.”
“The quantities are unknown but huge and a forensic audit will easily expose this. This is fraud or corruption. This contravened section 27 (e) and (c) of the Public Entities Corporate Governance Act (Chapter 10:31).”
Zipawu also said noted two companies dealing with Noic, were allegedly owned by Noic executives’ associated.
“These two companies’ tankers are given preferential treatment. We do not know whether they fully disclosed this conflict of interest and the nature of the disclosure if they did,” the document reads in part.
“We, however, from practice understand that this is a relationship that is against good corporate governance especially where these two companies get preferential treatment and also compete with the pipeline business of Noic. Some employees were dismissed from Petrotrade for such relationships,”
The union claimed Matukeni owns directly or indirectly a college in Southerton and a number of low density properties.
“With the salary that he earns, we believe his lifestyle and net worth cannot be reconciled. We believe a thorough investigation and lifestyle audit will prove the above allegations of corruption,” they added.
“We have checked information about executive remuneration in the country. Information that we got is that Noic executives are excessively remunerated compared to other executives. We understand that Mr Wilfred Matukeni earns US$20 000 in a market where even the president of the Republic of Zimbabwe doesn’t earn close to that. It is an act of poor governance for a parastatal head to earn such an obscene salary.
“We urge the commission to investigate how such a remuneration structure was approved. Even if it was approved, we need the commission to investigate if this is in line with the fiduciary duties of both the board and executive.”
Workers said between 2013 and 2015, 42 workers worked overtime for varied periods, but instead of paying the workers their overtime dues totalling US$413 000, management victimised the workers committee chairperson Eria Mashamba by dismissing him from employment.
“It is against the labour laws and good corporate governance for a company to deprive workers of their legitimate earnings. That is wage theft against the demand to treat all fairly, which is one of the principles of good corporate governance enshrined in the law,” the union said.