PSMAS senior finance executive Marshall Mashavave is among three men facing fraud charges over an alleged ICT procurement scam that could have exposed the medical aid society to potential losses of more than US$17 million.
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Read E-PaperMashavave (53), Barnabas Gabaza Mlambo (53) and Tafara Tomukudza Mafemba (27) appeared before Harare magistrate Tapiwa Kuhudzai.
The State initially opposed bail but later agreed to their release. The trio, who had spent the weekend in custody, was represented by lawyer Paida Saurombe.
The court ordered the accused to reside at their known addresses, avoid interfering with State witnesses and report fortnightly to the Zimbabwe Anti-Corruption Commission (ZACC) offices in Harare.
The State alleges that Mlambo and Mafemba are directors of Minana Technology Solutions (Pvt) Ltd, while Mashavave has served as PSMAS finance executive director since 2016.
The alleged scheme reportedly caused actual prejudice of US$57,658, while the potential financial prejudice is estimated at US$17,160,060.
According to the State, the matter stems from a PSMAS strategy retreat held in December last year, where the organisation resolved to conduct an assessment of its ICT systems as part of preparations for its 100-day plan.
The medical aid society had initially resolved to extend the licence for its existing Nexus system.
However, prosecutors allege that the accused, working with PSMAS board member Tawanda Tagwireyi and other officials, instead pursued the procurement of a new system under the pretext of addressing shortcomings in the existing platform.
The State alleges that on March 2, Tagwireyi instructed PSMAS head of ICT Luckson Mondo to involve Mafemba and Mashavave in a demonstration of software purportedly capable of addressing the organisation’s ICT challenges.
Three days later, Mlambo allegedly provided a proposed module architecture and indicated that Minana could begin scoping work on March 9, followed by a Proof of Value exercise on March 23.
Prosecutors say Mondo subsequently agreed with Mlambo that Minana would demonstrate its software to PSMAS at no cost, with the organisation retaining the option of abandoning the procurement if it was not satisfied with the product.
However, after Mondo’s contract ended on March 31, Munyaradzi Chibvongodze allegedly assumed the role of acting head of ICT and became involved in the proposed engagement with Minana.
The State alleges that Chibvongodze and other officials facilitated a Proof of Value exercise covering six areas, including payment automation, reconciliation and financial controls.
On April 29, Simon Nyadundu allegedly approved a memorandum that resulted in a contract being signed without the required tender process.
The agreement required PSMAS to pay Minana US$500,000 for services which, according to the State, the company had initially agreed to provide free of charge.
Prosecutors further allege that the scope of the project was later expanded from six functional areas to 12 modules without documentation showing formal approval, procurement review or an authorised variation.
The State claims that Mlambo and Mafemba subsequently issued three VAT-inclusive invoices on June 11, July 1 and August 4, despite Minana allegedly not being registered for VAT.
The invoices amounted to US$57,658 and were allegedly submitted to Mashavave, who is accused of approving payments into Minana’s CABS account despite allegedly knowing that the company and its directors had not carried out work for PSMAS.
On August 18, Mlambo and Mafemba allegedly claimed that they had successfully demonstrated their product to PSMAS.
They then submitted a quotation for the Premier Connect dual-currency platform, proposing an outright purchase price of US$3.75 million.
The alternative leasing arrangements included US$112,500 per month for five years or US$97,590 per month for seven years, together with a monthly maintenance charge of US$100,000 and a once-off implementation fee of US$562,500.
The State alleges that on August 27, Chibvongodze prepared a memorandum claiming that Minana had satisfactorily demonstrated its product.
He allegedly sought Nyadundu’s approval for PSMAS to directly procure the system without going through a tender process.
The matter is still before the courts and the allegations have not been tested.
