Hwange Colliery suspends acting MD and finance executive amid charges of financial impropriety

Hwange Colliery Ltd has suspended acting MD Shepard Manamike amid charges of what the company described as “unethical business practices characterised by financial improprieties” with effect from 4 October.
In a notice Tuesday, the company said it had also suspended another executive in charge of finance Tawanda Marapira.
“The Company advises that it has suspended its Acting Managing Director (Mr Shepard Manamike) and the Executive, Finance & Administration (Mr Tawanda Marapira) with effect from Thursday 4th October 2018. The Company has witnessed unethical business practices characterised by financial improprieties, particularly unauthorised expenditure. The circumstances are unacceptable especially when the Company was focused on production and sales,” Hwange said in statement.
“Due to the unauthorised financial transactions, the Company failed to meet its key obligations due to its creditors and employees.”
But the group’s acting chairman said this was a temporary setback occasioned by substandard performance within management structures, which his Board would restore.
He said the company was currently sitting on a stockpile of 345 000 tonnes valued at around $13mn.
“It is unacceptable that with such stock the Company fails to meet its financial obligations. The accumulation of a huge stockpile against huge market demand borders on sabotage than anything which the Board has moved in to uproot,” he said.
“The mantra under the new dispensation is zero tolerance to corruption. The Board is entrusted to protect the interests of the Company and preserve investor value. This Company is strategic to the national economy and cannot be prevented from becoming a successful concern on account of substandard performance.”