Upper Manyam Watershed Sub-Council Chairman Stalin Mau Mau allegedly gave former council CEO Wensley Muchhinery a bonus of about US$84,000 and more than US$155 million which was not approved by the government.

Therefore, he was last week charged with contravening the Public Finance Management Act before Harare Regional Magistrate, Turai Manwere.

He was released on $100 bail and remanded in custody until June 6. It is alleged that in October last year, while Mr Muchinire was still with the council, he wrote a letter requesting a mutual termination agreement. The letter was presented to the Board of Directors by Mao Mao, and on November 29, an extraordinary meeting of the Board of Directors decided to pay the requested bonus to Mr. Manoir.

On the same day, Mao wrote to the Minister of Lands, Agriculture, Fisheries, Water and Rural Development and the Minister of Finance, Economic Development and Investment Promotion to notify them of the final benefits approved by the Council.

On December 14, Mau Mau spoke at the council’s annual general meeting about the mutual disconnect between the council and Mr Muchinery. But there was no agreement to pay the bonus as required under Article 21 of the Public Entities and Corporate Governance Act.

It is the case of the country that the directors attending the annual general meeting did not meet a quorum as required under the Corporate Governance Code to ratify the resolution.

On 29 December, Mao Mao wrote to the two ministers giving them further notice of the final benefits due to Mr Muchinery.

But on 2 January this year, before the two ministers responded or agreed to pay in accordance with the Corporate Governance Code, Mao Mao entered into a mutual termination agreement with Mr Muchinire, thereby making an important financial decision without written approval from the government and no ratification by The Commission.

The end-of-service bonus contract for the outgoing CEO stipulates that 70 percent of the amount will be in US dollars and 30 percent in local currency. This was contrary to the Corporate Governance Circular on Mixed Pay which allowed public entities to pay employees a maximum of 40 percent of their gross pay in US dollars. Announce

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