HARARE – The Zimbabwe Anti-Corruption Commission (ZACC) has arrested Raphael Mushanawani, Chief Executive Officer of state-owned NetOne, over alleged fraud involving more than US$1.2 million (about R21.9 million). The arrest took place on Monday, 29 September 2025, amid growing scrutiny of procurement practices at the telecommunications giant.
According to ZACC, the matter dates back to 2022 when NetOne contracted Farevic Systems to replace its ageing SAGE 1000 accounting system with a modern Enterprise Resource Planning (ERP) platform. The contract was valued at US$3.5 million (approximately R63.9 million) and was expected to improve the efficiency of NetOne’s operations significantly.
However, investigators allege that during the course of the project, Mushanawani and NetOne’s finance executive, Christopher Muchechemera, secretly engaged another firm, Lunartech Solutions, to upgrade the very system that Farevic Systems was contracted to replace.
The initial contract with Lunartech Solutions was valued at US$257,600 (about R4.7 million). ZACC alleges that Mushanawani later signed two addendums with Lunartech, escalating the cost of the upgrade to over US$1.2 million.ZACC spokesperson Thandiwe Mlobane told reporters:
“Mr Mushanawani went on to sign two further addendums with Lunartech Solutions, raising the cost of the upgrades to more than US$1.2 million.”
In addition, ZACC alleges that Mushanawani authorised another contract with Diztech, valued at US$79,467 (about R1.4 million), for consultancy and training services that were already included in the Farevic Systems contract.
Investigators contend that these agreements were entered into without the knowledge or approval of NetOne’s executive committee and board of directors.
“These deals were executed outside the company’s governance structures, making them unlawful,” ZACC stated in a briefing.
ZACC Detains NetOne Head Mushanawani Over Alleged US$1.2 Million Fraud
Mushanawani was taken into custody in Harare on Monday and is scheduled to appear before the Harare Magistrates’ Court today, Tuesday, 30 September 2025.ZACC said the investigation is ongoing, promising to release more information as the matter develops.
The allegations have intensified public concern about governance and procurement oversight in state-owned enterprises. NetOne, as Zimbabwe’s leading telecommunications provider, is central to the government’s strategy for expanding digital connectivity. Mismanagement of such a key entity could have far-reaching implications for service delivery and public trust.
Analysts say that the alleged misconduct exposes vulnerabilities in corporate governance structures and highlights the need for stricter oversight in procurement processes, particularly in state entities.One governance expert commented:
“The case underscores systemic weaknesses. When contracts are signed outside proper governance frameworks, it not only undermines transparency but also damages public confidence in state institutions.”
The arrest of a CEO of a major parastatal is likely to reverberate across Zimbabwe’s corporate and political landscape. It comes at a time when the government is under pressure to crack down on corruption and restore credibility in state institutions.
Civil society organisations have welcomed the move, viewing it as part of a broader effort to hold public officials accountable. However, they caution that prosecutions must be thorough and transparent to prevent perceptions of selective enforcement.
At the time of reporting, NetOne had not issued an official statement regarding Mushanawani’s arrest. Sources within the company, however, expressed surprise at the developments, describing the allegations as “serious” and emphasising the need for due process.A senior NetOne official, speaking on condition of anonymity, said:
“This is a matter for the courts and for the anti-corruption commission. We expect the legal process to be followed to its conclusion so that clarity can be restored.”
As the matter unfolds in court, observers will be watching closely for both the evidence presented by ZACC and the defence mounted by Mushanawani. The case could set an important precedent in the fight against corruption in Zimbabwe’s state-owned enterprises, sending a clear message about the consequences of procurement irregularities.
For the public, the arrest of a senior executive over allegations involving millions of dollars serves as a stark reminder of the need for vigilance, transparency, and accountability in the management of public resources.
Whether the allegations against Mushanawani will be proven in court remains to be seen, but the arrest underscores the growing role of anti-corruption agencies in addressing misconduct in state-owned entities. It also raises questions about the adequacy of governance frameworks within such institutions and the measures needed to prevent similar cases in future.
As ZACC continues its probe, the case is likely to remain a focal point for debates around corruption, governance, and accountability in Zimbabwe.
Source- iHarare
