4 January 2013

Zimbabwe: Kanyekanye Launches Witch-Hunt At RTG

RAINBOW Tourism Group (RTG) chairperson Joseph Kanyekanye has launched a witch-hunt following a tender scam that has sucked in senior officials at the hotel group.

Sources say the investigation unearthed tender irregularities mainly in the finance department where company officials took advantage of the ongoing multi-million dollar refurbishment exercise to line their pockets.

Junior staff in the respective departments were also affected. The extent of the exposure could however not be ascertained at the time of going to print.

Recently, the RTG chair said some staff members were re-assigned while finance director Paschal Changunda, human resources manager Cinderella Masimbe and commercial director Godfrey Pasipanodya had submitted their resignations after the enquiry was launched.

"We discovered internal control weaknesses particularly in procurement, which resulted in 'separations' of the group and those involved," Kanyekanye said at the company's EGM held on December 27 last year. He added the group had re-introduced internal tender processes to plug holes and support profitability in line with the group's plans to return to profitability in the current financial year.

Efforts to get a comment from Kanyekanye were fruitless as he was said to be on holiday.

Changunda was RTG acting CEO for more than six months after former CEO Chipo Mutasa left the group in March last year to pursue other opportunities.

The hotel group in November appointed former African Sun MD Tendai Madziwanyika as CEO.

At the recent EGM, RTG shareholders unanimously approved the group's US$4,5 million rights issue, which will see the group floating 225 million shares at a price of US$0,02 per share at a ratio of 13,6737 shares for every 100 ordinary shares held.

Kanyekanye said the rights issue funds would be used to fully retire the remainder of short-term borrowings from a US$10 million National Social Security Authority medium-term loan. As at June 30, 2012, the company's short-term borrowings stood at US$12,6 million.

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