Upper Manyame Sub-Catchment Council chairman Stalin Mau Mau allegedly awarded former council chief executive Wensley Muchineri a gratuity of almost US$84 000 and more than $155 million which was not approved by Government.
So last week he was charged with contravening the Public Finance Management Act before Harare regional magistrate Taurai Manuwere.
He was released on US$100 bail and remanded to June 6. It is alleged that in October last year, when Mr Muchineri was still with the council, he wrote a letter seeking a mutual termination agreement. The letter was presented to the board by Mau Mau and on November 29 an extraordinary full board meeting resolved to pay Mr Manuwere the requested gratuity.
On the same day, Mau Mau wrote to the Minister of Lands, Agriculture, Fisheries, Water and Rural Development and the Minister of Finance, Economic Development and Investment Promotion notifying them of the terminal benefits that had been agreed by the board.
On December 14, Mau Mau told the council's annual general meeting about the mutual separation between the council and Mr Muchineri. But there was no agreement on the payment of the gratuity as required by Section 21 of the Public Entities and Corporate Governance Act.
It is the State's case that the board members who attended the AGM did not make up a quorum as needed under the Corporate Governance Act to ratify a resolution.
On December 29, Mau Mau wrote to the two ministers giving them further notification on the terminal benefits payable to Mr Muchineri.
But on January 2 this year, before the two ministers responded or approved the payment in accordance with the Corporate Governance Act, Mau Mau entered into mutual termination agreement contract with Mr Muchineri thereby making a significant financial decision with neither the Government's written approval nor ratification by the board.
The gratuity contract for the outgoing chief executive provided that 70 percent of the payment would be in United States dollars and 30 percent in local currency. This was contrary to the corporate governance circular on blended remuneration which authorised public entities to pay employees a maximum of 40 percent of gross remuneration in US dollars.
