NetOne CEO’s arrest labeled a ‘power grab,’ lawyers claim fraud allegations fabricated
HARARE – The arrest of NetOne Chief Executive Raphael Mushanawani on charges of fraud involving US$1.2 million is being fiercely contested by his legal team, who assert the accusations are a fabricated attempt by rivals to seize control of the organization.
Mushanawani’s lawyers have claimed that their client is a victim in a meticulously orchestrated “ploy to elbow him out” and that his detractors have misled the Zimbabwe Anti-Corruption Commission (ZACC) by “name dropping very powerful individuals” who supposedly hold high political office.
They argue that these political figures are not actually involved and the entire scheme is designed for the instigators to take over NetOne’s leadership.
In a September 30 letter addressed to ZACC, Mushanawani’s lawyer, Admire Rubaya, contended that the CEO’s arrest and subsequent detention are unlawful and called for his urgent release.
The defense has maintained that everything Mushanawani is accused of having done was above board and had the approval of the NetOne board.
This, according to the lawyers, directly contradicted the allegation that he corruptly engaged firms to manage the organization’s systems without the board’s knowledge.
The allegations from ZACC stem from a 2022 contract where NetOne hired Farevic Systems (Pvt) Ltd to implement a new Enterprise Resource Planning (ERP) system to replace the outdated SAGE 1000 at a US$3.5 million cost.
ZACC claims that while this project was ongoing, Mushanawani acted outside company procedures and secretly engaged Lunartech Solutions (Pvt) Ltd to upgrade the very SAGE 1000 system meant for replacement, a move allegedly made without the Executive Committee or Board’s knowledge or approval.
The lawyers, however, dismissed these claims as “fabricated,” stating that the evidence confirms full board approval. They expressed bewilderment that Mushanawani is currently detained “over an issue which exposes your officers’ lack of understanding of IT Systems.”
The defense has further explained that the new SAP ERP system is fundamentally different from the SAGE 1000 system NetOne has historically used.
Since SAGE South Africa announced the SAGE 1000 was reaching its end-of-sale stage (meaning no maintenance or support past December 31, 2024), an upgrade to SAGE L200 was “imperative” and a “viable alternative” to ensure NetOne’s continued operations and avoid hacking risks.
They argued that this upgrade was approved by the board and was part of the 2025 Strategic Plan to modernise the Technology Infrastructure.
The lawyers further argued that because the new system is not yet operational, the two systems were required to run parallel until the new ERP was fully functional.
Mushanawani’s legal team has also contested the specific financial and contractual details cited by ZACC.
The lawyers said the claim that Mushanawani signed two additional contract addendums to upgrade the SAGE ERP system for US$1,200,000 is “false.” They also challenged ZACC to provide evidence, stating that the only payments made thus far are US$184,800 and US$88,002.57.
The defense also refuted the allegation that Mushanawani entered into an unapproved US$79,467 contract with Diztech (Pvt) Ltd for consultancy training services.
Their letter asserts that no contract was ever signed between Diztech and NetOne, and not a “dime” has been paid to the company, as no such services were ever rendered.
The defense presented by the lawyers positions Mushanawani not as a perpetrator of fraud, but as a victim caught in an internal corporate battle.
“Our client is aware that there are certain individuals who are targeting his post who have approached you on the basis of name-dropping very powerful individuals who sit in the high echelons of power and politics in this country yet there is no involvement of any such political figures.
“The grand plan is for these instigators to take over as the people at the helm of Netone. These allegations are premised on a false factual conspectus which is not even supported by evidence.
“It is very clear that our client is just but a victim in a well orchestrated ploy to extirpate him from the helm of Netone, it is our hope that you will clearly see through the machinations of his detractors and allow real and substantial justice to take its course.
“We hope you will not give in and or yield to baseless, and animated allegations. If anything our client is being victimised for doing things right, for acting in the best interests of his principal,” the lawyers stated.
