Former Air Zimbabwe Bosses Jailed for 7 Years in $10 Million Fraud Case
By Tendai Rupapa, Senior Court Reporter
Two former Air Zimbabwe executives, former CEO Peter Chikumba and former company secretary Grace Pfumbidzayi, were each sentenced to 10 years in prison for criminal abuse of office. With three years suspended for good behaviour, they will serve an effective seven years.
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| Grace Pfumbidzayi |
Details of the Fraud
The charges against Chikumba and Pfumbidzayi arose after the Air Zimbabwe board discovered anomalies in payments made for aviation insurance premiums between April 2009 and April 2013. The pair was found guilty of improperly appointing Navistar Insurance Brokers to handle the airline's insurance without going to tender, a violation of company policy.
They were also convicted of inflating insurance premium payments to two UK-based companies, Colemont Reinsurance Brokers and Reinsurance Brokers (Private) Limited. The scheme resulted in the airline being swindled out of approximately $10 million.
The Court's Verdict
Harare magistrate Fadzai Mtombeni convicted both Peter Chikumba, 60, and Grace Pfumbidzayi, 50, of criminal abuse of public office. During the trial, Chikumba attempted to distance himself, claiming Pfumbidzayi acted alone. However, evidence showed that Chikumba had chaired a meeting that resolved to engage Navistar, making him complicit. The magistrate noted that Pfumbidzayi gave "sophisticated evidence, sometimes telling the truth and sometimes contradicting herself."
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| Peter Chikumba |
While convicted of criminal abuse, they were acquitted on a separate charge of contravening the Procurement Act.
Failed Appeal
Both Chikumba and Pfumbidzayi later appealed their conviction and sentence, arguing that they were wrongly convicted and that the seven-year effective sentence was excessive. However, the High Court dismissed their appeals, ruling that the original notices of appeal were "fatally defective." A judge stated, "If the original notices of appeal are defective, then there is no appeal before the court. If there is no appeal before the court, then the matter ends there."
Their lawyers later filed an amended appeal arguing that as employees of a private limited company, Chikumba and Pfumbidzayi were not "public officers" under the definition of the law, and thus could not be convicted of criminal abuse of duty as a public officer.
Key Facts of the Case
- Defendants: Peter Chikumba (former Air Zimbabwe CEO) and Grace Pfumbidzayi (former Company Secretary).
- Charge: Criminal abuse of office.
- Crime: Defrauded Air Zimbabwe of approximately $10 million through an insurance scam involving inflated premiums and improper appointment of brokers.
- Sentence: 10 years in prison, with 3 years suspended. Effective sentence of 7 years.
- Outcome of Appeal: Initial appeals were dismissed by the High Court as "fatally defective."
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