Zupco leadership to blame for the company’s demise

by | Sep 30, 2024 | Business | 0 comments

Tendai Ziso

The tragic demise of the country’s state owned public transport company (Zupco) can be attributed to its leadership, as reports are now emerging that some of its leaders use their positions to conduct corrupt activities to enrich themselves at the expense of operations.

This publication recently received a report from anonymous sources at the company,  that uncovers a lot of corporate governance abuses and gross mismanagement activities that are alleged to have been orchestrated by Mrs Samunderu as the company’s operations manager and her allies in senior management.

The report alleges that Mrs Samunderu uses her power to conduct all executive functions within Zupco, overriding  other qualified managers from taking on leadership roles. The abuse of power has resulted in all decisions being made solely by her, without the input from other managers.

According to the report,  Mrs Samunderu was involved in the recruitment and selection of all staff members, including the CEO, Operations Director and the Company Secretary when she had an interest.

“Mrs. Samunderu’s apparent monopoly on decision-making represents a severe breach of corporate governance principles. This centralization of power not only undermines the roles of other qualified managers but also creates a bottleneck in operations. It has lead to delayed decisions, biased judgments, and a lack of diverse perspectives in strategic planning. This structure is particularly dangerous for a public transport company where agile decision-making and collaborative problem-solving are crucial,” reads part of the report.

It also states that she mismanaged resuscitation money during the 2023 election campaign period. She is alleged to have brought spare parts for buses using inflated prices for her to make money.

“As the Operations Director, Mrs. Samunderu  mismanaged resuscitation money by procuring expensive spares under the guise of campaign rallies through the procurement department. This misuse of funds has raised concerns about financial transparency within the organization. The  misuse of resuscitation money and irregular procurement practices during campaign rallies point to a serious breach of financial stewardship. Such actions, not only deplete the company’s resources but also violate public trust, especially given Zupco’s role as a public service provider,” reads the report.

Mrs Samunderu has also been accused of misusing corporate assets for personal interests. The explosive report alleges that Mrs Samunderu hires vehicles from CMED for personal use when there are available cars I the company’s pool of vehicles. She is also accused of manipulating the company’s fuel allocation system for personal gains.

 

“She hired a car from CMED without proper authorization, despite the availability of pool vehicles. She misuses corporate assets and staff for personal interests, for example the driver with whom she does most of her personal errands with. This misuse of resources highlights her disregard for proper protocol and accountability. The misuse of corporate assets, including vehicles and staff, for personal interests represents a clear abuse of power. This not only incurs unnecessary costs for the company but also sets a poor example for other employees, potentially leading to a culture of misuse and waste. The manipulation of the fuel allocation system further compounds this issue, suggesting a systematic abuse of company resources for personal gain.

“Mrs. Samunderu has never been audited, leading to concerns about the transparency of her actions. The unaccounted Zanu PF elections money from buses they  hired further raises questions about financial mismanagement. The absence of audits for Mrs. Samunderu’s activities is a red flag for potential financial malfeasance. Without proper oversight, there’s significant risk of continued misuse of funds and resources. The manipulation of financial reports undermines the integrity of the company’s financial statements, potentially misleading stakeholders and regulatory bodies,” reads the report.

According to the report,  Mrs. Samunderu gives favors to departments headed by her friends, particularly the Audit Department where she allegedly has an adulterous relationship with the Manager. She also suppresses information of loan schemes that are created by the company to benefit staff members so that she and her colleagues can benefit.  It is alleged that Mrs Samunderu and her colleagues benefitted from a vehicle loan  scheme which was supposed to be extended to all D5 Managers.

“This favoritism has created a toxic work environment and compromised the integrity of the organization. Preferential treatment of certain departments, particularly based on personal relationships, creates a toxic work environment. This not only demoralizes employees but also leads to inefficiencies as decisions are made based on personal preferences rather than merit or organizational needs. The alleged improper relationship with the Audit Department Manager is particularly concerning as it compromises the integrity of internal controls.

 

Mrs. Samunderu has formed unholy alliances with the board, leading to the clearance of Senior Managers through contract expiries, for example the HR and Risk Managers. The Finance Director also suffered the same fate, having his contract terminated and the Organisation incurring unnecessary costs in the form of an exit package. Surprisingly, she was the Acting CEO/Operations Director at the same time but she was spared. This manipulation of the board has resulted in the termination of contracts for competent managers, while she has been spared from similar consequences. The systematic removal of senior managers and misrepresentation of colleagues to the CEO and Board disrupts organizational continuity and expertise. This practice can lead to a brain drain within the company, leaving it without experienced leadership. Moreover, it creates an environment of fear and instability among remaining staff, potentially leading to reduced productivity and increased turnover.

“Mrs. Samunderu has initiated restructuring exercises without prior consultations, leading to the dismissal of senior managers she has worked with. Additionally, she is in the habit of suppressing resolutions that benefit her enemies, further highlighting her abuse of power. For example, a resolution to increase employees’ salaries has been suppressed yet they are wallowing in poverty. Her salary was increased when she was promoted so she is not suffering from the same. Targeted restructuring without proper consultation can lead to loss of institutional knowledge and disruption of operations. The suppression of employee benefits and salary increases, particularly in a selective manner, can result in decreased morale, reduced productivity, and potential labor disputes,” the report reads.

As the operations director,  Mrs Samunderu allegedly uses her position to give herself  excessive fuel allowances and she pushes junior managers to create  falsified reports to make her office look good. Managers from operations are reportedly  told what to report so as to paint a good picture which is different from what is on the ground.

During her time as the acting CEO, the company is reported to have  experienced fuel shortages. Private operators were reportedly paid for over 10 months for parked buses.  Fuel shortages and payment issues for parked buses not only affect the company’s service delivery but also its financial stability.

The cumulative effect of these issues have caused the of Zupco’s operational efficiency, financial stability, and public image. As a public transport provider, loss of public trust can have severe consequences for the company’s long-term viability and its ability to secure future funding or support. This calls for an urgent intervention and a comprehensive overhaul of Zupco’s management structures, financial controls, and corporate culture to restore the company’s integrity and effectiveness in serving the public at large,” reads the report.

Efforts to get a comment from Mrs Linda Samunderu were fruitless as she neither responded to questions that were sent to her on her WhatsApp number, nor picked up the reporter’s call.  Zupco’s Spokesperson Tito Chirau refused to comment, as he said the issue is “Too political” .

“This issue is too political.  Therefore I cannot comment,” he said. Zupco’s Board Chairperson, Mr Jimister Chininga also refused to comment when he was contacted.

 

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