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Business Reporter

COTTCO Holdings has with immediate effect fired its acting chief executive officer Christopher Murove for alleged financial abuse, company officials said yesterday. While the details on the alleged abuse of company’s funds remained sketchy, the dismissal of Mr Murove followed a report compiled by the loss control department, which revealed he had been misappropriating funds from the company and diverting to his personal use.An internal audit conducted to probe fraudulent transactions found him guilty.

The decision was made yesterday during a full board meeting. The remuneration committee and internal audit committee had met on Monday and Tuesday respectively, to discuss the findings of the two reports compiled on the alleged financial abuse.

The report by the loss control department had recommended the prosecution of Mr Murove.

“He was told to resign with immediate effect or to face prosecution,” said one official.

Mr Murove and vice chairperson Mr Elliot Mugamu refused to comment, referring questions to chairperson Mr Cecilia Paradza who could not be reached by the time of going to print.

Mr Mugamu, audit and finance board committee chairman directed the company’s internal audit department to carry out a special investigation on all allegation levelled against Mr Murove after the workers committee had requested to conduct the probe.

“I did not support the request by some members of the workers committee to carry out (themselves) an investigation into the alleged financial abuses by the acting managing director when the company has a robust internal audit department whose integrity they had not questioned,” he said, responding to allegations that wanted frustrate the investigation.

“As audit and finance board committee chairman, I therefore, directed Cottco’s internal audit department to carry out a special investigation.”

Sources said company secretary Mr Pious Manamike was tipped to take over as acting managing director although there are strong reservations against his appointment at board and workers committee level. Mr Manamike was the company secretary of AICO, a holding company which had a controlling stake in Cottco.

Mr Murove was appointed acting managing director late last year, following the resignation of Mr Collins Chihuri.

Government is in the process of taking over Cottco through Zimbabwe Asset Management Company, a special vehicle owned by the Reserve Bank of Zimbabwe responsible for acquiring, managing, restructuring or disposing of non-performing loans.