NetOne Board Reappoints Suspended CEO Lazarus Muchenje

NetOne Board reinstated suspended CEO Mr Lazarus Muchenje as the new NetOne CEO, regardless of the challenge by Chief Secretary to the President, Dr Misheck Sibanda.

Sources close to the developments have reiterated that the chief secretary is acting outside his jurisdiction and has no mandate to appoint or dismiss NetOne employees, while he has every right to question.

In a board resolution made by the company, NetOne Board reversed the suspension effected on the CEO and recommended to the shareholder his reinstatement.

The recommendation is however subject to approval by the minister, whom we are informed in principle, he has already accepted the decision by the board.

The recommendations read “The board recommends to the shareholder, in terms of Section 16 of the Public Entities Corporate Governance Act as read with Section 11 of the Public Entities Corporate Governance (general regulations) 2018, that having relooked at the decisions that were made regarding the CEO, the board has considered it prudent and in the interest of the company that the pending legal proceedings against the CEO be withdrawn,” read part of the board resolutions.

“The board further recommends to the Shareholder, that an engagement process be commenced with the CEO and that a detailed deed of settlement be negotiated and entered into the CEO which will detail the resolution taken by the board. “The board shall engage the shareholder regarding the contracts of employment of nine staff members who were subject of a directive issued by the ministry on the 5th of October, 2018 and was not implemented by the board.”

Chief secretary is reported to have been irked by the last lawsuit that was made by Muchenje which mentioned his name amongst the respondents.

Legal experts however said the mentioning was not making him a personal respondent but a basic attention since he also was part of the affiliated parties in the decision.

NetOne board is the highest decision making arm over the company’s operation , while they are legally obliged to inform and consult the Minister on high decision making.

The minister was already appraised of the position and has also updated the shareholder who is government.The board however is yet to consult Mr Muchenje on the decision they have made and they are expected to be meeting soon for the engagement.

Sources close to the matter that only the Minister can make or reverse such an appointment and Dr Misheck Sibanda is out of order and acting beyond his jurisdiction.

The Chief secretary is reported to have been irked by the last lawsuit that was made by Muchenje which mentioned his name amongst the respondents.

Legal experts however said the mentioning was not making him a personal respondents but a basic industry practice of attention since he also was part of the affiliated parties in the decision.