Group Managing Director (MD) of Cresta Marakanelo group has resigned with immediate effect amid being implicated in financial irregularities at the hospitality outfit.
This week, Maria Nthebolan, Chairperson of the board of directors announced that Tawanda Makaya, has tendered his resignation with immediate effect. The board accepted the resignation.
Nthebolan announced that the process of identifying a new Managing Director and Chief Financial Officer (CFO) to lead the business will commence shortly. In the meanwhile, Glenn Stutchbury and Chipo Mandela will continue to act as Managing Director and Chief Finance Officer respectively.
Makaya’s resignation comes just two weeks after the leading hospitality services provider, dismissed its Group CFO Valentine Mganga after investigations revealed financial irregularities. Initially, both Mganga and Makaya were suspended after the board found out that Mganga had fraudulently acquired millions of pula from the hotel services provider.
According to the company, it appeared that Mganga who was the ultimate financial controller of the P240 million worth outfit by market capitalization, had been completing fictitious invoices for non-existent works and supplies against the company. It is thought that the scheme enabled him to pay fake employees and suppliers while receiving the money himself.
The company discovered that the CFO, through this system managed to obtain in excess of P2 million according to Cresta estimates. The company is co-owned by Zimbabwean Company, TA Holdings (40 percent) and BDC (26 percent). The disciplinary offence of the former MD, according to the board were that he was believed to have been grossly negligent in the execution of his duties to have allowed the embezzlement to have happen under his watch, costing the shareholders millions. It is said that the board believed that either he could not be trusted with the company funds or he was in a tag-team with the CFO. Further, there are close sources who allege that the Cresta MD, who is Zimbabwean by nationality was also not wanted at the board, which is said to have been waiting for an opportune time to replace him with a Botswana citizen. Makaya is believed to have been pressured by the board of directors to resign. However, Nthebolan, the board chair said that his resignation has got nothing to do with the board and that is was rather made by his choice. She said that he may have made his decision after a careful introspection during his time on suspension.
Nthebolan added further, that the full investigation is expected to be complete soon. “We will fully announce the outcomes of the investigation because we owe our shareholders an honest and transparent explanation,” she explained. Should the investigation however warrant legal action against either the former CFO or MD, Nthebolan said that they will be summoned wherever they are and be dealt with according to the law. Cresta this week traded at a 12 month high of 131 thebe per share, but has since fallen to 128 thebe per share.