HARARE – The three Air Zimbabwe bosses who were last week arrested on fraud allegations were denied bail after a magistrate ruled that they were a flight risk.
Grace Nyaradzai Pfumbidzai (49), Peter Chikumba (59) and Innocent Mavhunga (53) appeared before the Harare Magistrates Court where they applied for bail pending the high profile trial.
Suspended Air Zimbabwe chief executive Mavhunga and his predecessor Chikumba are accused of theft and fraud involving US$11 460 448 while Pfumbidzayi is facing six counts of fraud and one of criminal abuse of duty as a public officer for allegedly swindling the airline of more than €5 895 695 and US$1 298 827.
A forensic audit report by BCA Forensic Auditors concluded that senior managers at the airline had looted millions of dollars from the State enterprise.
The fingered executives are Mr Mavhunga, Mrs Pfumbidzayi, human resources manager Mr Oswaald Madziva, finance and administration manager Ms Patience Tichagwa, strategy and economics boss Mr Norbert Machingauta, and acting general manager Mr Nicholas Mujere.
Mrs Pfumbidzayi committed the offences while she was company secretary responsible for the insurance portfolio. She was responsible for administration of the portfolio, involving drafting, and reviewing of contracts and other related documents.
It was established that Mrs Pfumbidzayi played a pivotal role in facilitating that the airline pay inflated amounts to Navistar between 2009 and 2013, resulting in the airline losing 4 461 672 euros.
According to the report, Mrs Pfumbidzayi also appointed Navistar as Air Zimbabwe’s aviation insurance brokers on March 18, 2009 without following the required procedures prescribed by law and company policy.
In addition, Mrs Pfumbidzayi authorised payment of a fraudulent invoice valued at US$142 300 from Navistar, thereby prejudicing the already struggling airline.
Mrs Pfumbidzayi, according to the papers, was part of a fraudulent transaction that saw her authorising debit notes from Navistar amounting to US$1 062 370,52 for aviation insurance cover for two A320 Airbuses covering the period from November 2011 to April 3, 2012.
But auditors found that the airbuses in question had not yet been bought and that they were only received in January and July 2012, respectively.
The forensic audit report also found that Mrs Pfumbidzayi failed to ensure the remittance of the annual hangar property damages premiums amounting to US$205 269,80 to Altfin Insurance.
In addition, she failed to insure the hangar property for the period stretching from April 1, 2010 to March 31 of the same year.
Mrs Pfumbidzayi was also found to be part of a fraudulent transaction in which 713 921,04 euors was released by the airline to pay insurance cover for three MA60 aircraft to Navistar when the planes were already covered Colemont Insurance Brokers’ debit notes.
