Members of the Marange Resources Ltd board awarded themselves holiday allowances of $28 000 each despite the company recording heavy losses, Now Daily has learnt.
The board members also gave each other thousands of litres of fuel and blew nearly $1 million on ‘extra security’ for themselves, according to company records seen by this website. The extra perks have riled state auditor Mildred Chiri after it emerged the directors were already getting huge board and ‘sitting fees’ of thousands of dollars not approved by the minister of mines.
“In addition to the approved remuneration, non-executive directors were given 2 940 litres of fuel (cumulative), holiday allowances of US$27 450 each, and US$758 000 was paid as extra security to non-executive directors and the CEO contrary to best principles of corporate governance which state that directors remuneration should be approved by shareholders. The payments were also not taxed in contravention of the Income Tax Act,” Chiri said.
Chiri said the unusual awards could result in ‘loss of assets’ and ‘penalties and interest’ from the tax man.
Mines minister Walter Chidhakwa has since sacked the entire tainted Marange Resources board and suspended CEO Obert Dube and seven other executives pending investigations into corruption at the state-owned firm.
An interim manager at Marange Resources blamed the sacked board for pressuring management to give them the money and benefits.
“This was a result of a weak corporate governance framework and control environment,” the manager said. “Management will seek shareholder guidance and approval when confronted with requests and directives of this nature from board members in future.”
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