PHILLIMON MHLANGA
The Procurement Regulatory Authority of Zimbabwe (PRAZ) may have violated section 10 of the Public Finance Management Act when it appointed an acting CEO at the institution.
PRAZ operations director Clever Ruswa was appointed acting CEO after the country’s procurement authority’s substantive boss, Nyasha Chizu, was put on leave of absence with full benefits in July soon after giving oral evidence in Parliament saying some State entities were not complying with procurement guidelines issued by PRAZ when Covid-19 pandemic was declared a national disaster.
But, giving evidence to the Parliamentary Portfolio Committee on Budget, Finance and Economic Development, chaired by Felix Mhona, this week, Chizu said the board can only appoint an acting CEO if he had been suspended or fired, in terms of Section 10 of the Public Finance Management (PFM) Act and the Labour Act.
He said it was the prerogative of the CEO in terms of Section 10 of the PFM Act to appoint an acting CEO, meaning the board could have violated the Act.
Chizu was put on leave of absence with restrictions on his interactions with staff and stakeholders. This means he cannot perform his derogatory duties.
Asked why PRAZ failed to respond to issues raised by the portfolio Committee in July, Chizu said: “Unfortunately, on July 7,2020, soon after giving oral evidence to the Committee, he was put on leave for 30 days on July 7 soon after giving oral evidence and is not supposed to interfere with PRAZ operations.
Now, I am on 90 days of that leave., The letter stated that it was not an investigation or a disciplinary hearing. My issues with the board might have might have been to do with my appearing before the Committee on July 6, 2020. This is the reason I asked for a certificate of protection,” Chizu said.
” So, I am not in a position to respond to issues raised by you chair (Mhona). In terms of Section 10 of the PFM Act, I was supposed to appoint an acting CEO in my absence.”
Mhona said witnesses who appear before a a parliamentary committee should be protected.
“We do not want to see witnesses being intimated when they appear before a ommittee. If it is true that you are saying, it is unfair and unjust on the part of the board,” Mhona said.
PRAZ board chairperson, Vimbai Nyemba said Chizu’s leave had nothing to do with the CEO appearing before Parliament but an administrative issue that was being dealt with.
Chizu gave oral evidence to the Committee on July 6, 2020 and was immediately forced to take a 30-day leave with full benefits. The leave has since been extended by 90 days with no reasons offered by the board.
“We are seized with the internal issues. We are unable to share with the committee as these are internal matters,” Nyemba said.
In Chizu’s absence, PRAZ failed to provide Parliament with the information on COVID-19 procurement, which Parliament demanded in July this year. The Mhona-led Committee wanted to recommend remedial action.
Mhona, however, blasted acting CEO Ruswa, who appeared before the Committee with Chizu and other PRAZ managers on July 6,2020 and the board for failure to respond to the issues raised by the Committee.
“We need answers on how public funds are used. You should be serious. Mr Ruswa, were you not here when we demanded that information? Mhona asked.
Mhona demanded closure to the issue.
“It doesn’t speak well to corporate governance. They promised to do so in 30 days. We are worried about the time frame because it’s now over 90 days. My demand to you is to bring closure to this issue for the benefit of Zimbabweans,” Mhona said.
Another member of the Portfolio Committee on Budget, Finance and Economic Development, Tatenda Mavetera said: “Public resources are being misused at the expense of the nation because of this (PRAZ fight). You (PRAZ board) should show some seriousness. It also compromises our oversight role.”
Nyemba said: “There is no delay done by the board. We are trying to comply. It also takes time. We are really making sure we are complying.”
