A tense legal and political conflict is emerging after the arrest and imprisonment of NetOne’s chief executive officer, Raphael Mushanawani, on Monday, due to accusations of unauthorized purchasing and improper contract practices.
The legal team of Mushanawani, Rubaya and Chatambudza Legal Practitioners, have sent a letter to the Zimbabwe Anti-Corruption Commission (ZACC), calling for his immediate and full release, labeling his arrest as “unlawful” and “part of a planned defamation effort.”
The head of NetOne was taken into custody over claims of signing a contract with Lunartech Solutions (Pvt) Ltd to enhance NetOne’s Enterprise Resource Planning (ERP) system from Sage 1000 to Sage L200, allegedly without the awareness or consent of the executive committee or board. The agreement is said to have been valued at US$257,600.
Furthermore, ZACC claims that the CEO approved two additional clauses to the contract, increasing the overall cost to US$1.2 million prior to establishing a separate, unapproved agreement with Diztech (Pvt) Ltd for US$79,467 in consulting and training services.
In their five-page response, Mushanawani’s legal team stated that the ERP system upgrade was both legitimate and necessary for ongoing business operations. Referencing a letter from Sage South Africa dated November 4, 2024, they claimed that the current Sage 1000 system was set to expire on December 31, 2024, after which no further maintenance or support would be available.
“The ongoing use of the product after 31 December 2024 poses a major business risk to NetOne’s operations,” the legal representatives stated, citing Sage’s communication.
They argued that the choice to upgrade was already included in NetOne’s 2025 strategic plan, which had been approved by the board, and that Mushanawani followed the board’s instructions.
“Despite your assertions, upgrading the SAGE ERP 1000 to SAGE L200 was essential… no one can subsequently claim the commission of the offense or concealment of any transaction related to the principal’s business,” the attorneys stated.
The legal firm also challenged the assertion that $1.2 million was paid, arguing that only $184,800 and $88,002.57 were spent concerning the project. Additionally, they reject any contractual connection or payment to Diztech (Pvt) Ltd.
They proposed that Mushanawani’s arrest could be politically driven, claiming that influential people with a stake in NetOne’s management were behind his detention.
“The client is aware that some people are targeting his position… the main scheme is for these troublemakers to assume control of NetOne,” the letter stated.
Legal professionals contended that the arrest was not supported by sufficient evidence and cautioned that their client “retains the right to pursue his legal remedies when the suitable moment arrives.”
They blamed ZACC officials for not recognizing the technical distinctions between the ERP systems involved and for improperly handling what is essentially an internal company issue.
Provided by SyndiGate Media Inc. (Syndigate.info).
