Fidelity sends managers on forced leave

11 April 2016

There have been allegations of corporate governance malpractices at the firm, which has forced the Insurance and Pensions Commission (IPEC) to appoint KPMG Chartered Accountants (Zimbabwe) to conduct the audit.

Meanwhile, the company’s board appointed Mrs Nyaradzo Matindike as acting MD in the interim. In a statement to stakeholders last week, the company said IPEC has decided to take the matter into its own hands after initial results of an internal investigation appeared in the media.

“Preliminary results of the internal audit review were unfortunately leaked to the press. While these internal processes were ongoing, IPEC requested an onsite examination. To conclude their report, IPEC has appointed KPMG Chartered Accountants (Zimbabwe) to conduct a forensic audit in terms of Section 67(2) of the Insurance Act Chapter 24:07.

“This audit is intended to clarify issues relating to business operations, and allegations of corporate governance malpractices at the company. “As part of good corporate governance and in order to facilitate the swift execution of this mandate, the managing director, Mr S B Chapereka and the finance director, Mr G Mushoma, will be on leave during the tenure of the audit.

“In the interim the Board has appointed Mrs Nyaradzo Matindike as acting managing director,” said the company. The group reported a 36 percent increase in revenue in the full-year to December 31, 2015 to $17,2 million from $16,5 million in FY2014.

The Herald