NetOne CEO Held as Anti-Corruption Commission Investigates US$1.2m Contracts

NetOne CEO Raphael Mushanawani has been arrested as Zimbabwe’s Anti-Corruption Commission investigates over US$1.2m in alleged fraudulent contracts (image source)

NetOne chief executive Raphael Mushanawani was arrested on Monday as the Zimbabwe Anti-Corruption Commission (ZACC) opened a fraud investigation into more than US$1.2 million in alleged irregular contracts tied to accounting-system upgrades, court and commission sources confirmed.

According to ZACC, the probe centres on NetOne’s 2022 decision to engage Farevic Systems for a US$3.5 million Enterprise Resource Planning (ERP) system to replace its SAGE 1000 platform. While that project was underway, Mushanawani allegedly authorised a separate deal with Lunartech Solutions to upgrade the same SAGE 1000 system for US$257,600. Two later addendums inflated that contract to more than US$1.2 million.

“The CEO is alleged to have acted in common purpose with Christopher Muchechemera from the finance department in authorising these payments,” ZACC said in a statement. Investigators also allege Mushanawani authorised an unapproved agreement with Diztech, paying US$79,467 for consultancy and training services already included under Farevic’s contract.

ZACC asserts the transactions bypassed NetOne’s executive committee and board approval processes. Mushanawani is expected to appear before Harare Magistrates’ Court on Tuesday, court filings indicate.

NetOne, a state-owned mobile operator, has faced past scrutiny over procurement, and the case signals intensified enforcement against governance lapses at state enterprises. Legal analysts say the trial will focus on whether redundant contracts were authorised, if payments delivered legitimate value, and whether side agreements were structured for personal or third-party benefit.

“If ZACC demonstrates the payments were deliberately unnecessary or improperly authorised, the matter could escalate to criminal fraud charges and state recovery claims,” one Harare legal analyst said. NetOne did not immediately respond to requests for comment. Company policy requires board approval for major contracts, sources within state-enterprise oversight stressed. Mushanawani’s detention may trigger parliamentary scrutiny, auditor reviews, and tighter procurement controls across the sector.

The case highlights systemic risks in public-sector technology procurement, where overlapping vendor contracts and addendums can obscure accountability and inflate costs. Analysts warn that prolonged investigations could unsettle NetOne’s operational focus and investor confidence, while regulators push for reforms to safeguard taxpayer-funded enterprises.

ZACC says its investigation will continue, with prosecutors examining procurement records, bank transfers, and witness statements. The outcome, analysts note, will hinge on whether prosecutors prove the disputed contracts were both redundant and improperly authorised.