Magistrate Court Rules NetOne CEO Raphael Mushanawani Not Guilty Of Fraud

Magistrate Court Rules NetOne CEO Raphael Mushanawani Not Guilty Of Fraud

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NetOne chief executive officer, Raphael Mushanawani, walked free on Thursday after fraud charges against him were struck off.

Harare magistrate Marewanazvo Gofa ruled that there was “no evidence linking him to the alleged crime,” bringing an end to the proceedings against him.

Mushanawani’s legal team had argued that his arrest was unjustified, saying the allegations arose from a misunderstanding of information technology systems by investigators from the Zimbabwe Anti-Corruption Commission (ZACC).

He had been accused of authorising an upgrade to the company’s SAGE 1000 system without approval from the NetOne board.

The matter originated from a 2022 contract in which NetOne engaged Farevic Systems (Pvt) Ltd to replace its outdated SAGE 1000 platform with a new Enterprise Resource Planning (ERP) system valued at US$3.5 million.

Prosecutors alleged that, while the project was still in progress, Mushanawani unlawfully contracted Lunartech Solutions (Pvt) Ltd to upgrade the SAGE 1000 system without securing the requisite board or executive approval.

Defence lawyer Admire Rubaya, of Rubaya and Chatambudza Legal Practitioners, told the court that the SAGE 1000 system had reached its “end-of-sale” stage, and that SAGE South Africa had formally advised NetOne that support and maintenance would cease after 31 December 2024. He argued:

“Contrary to the state’s claims, the upgrading of the SAGE ERP 1000 to SAGE L200 was imperative as it was a viable alternative wherein SAGE South Africa would provide vendor maintenance and support. This was key and had been approved by the board.”

Rubaya argued that continuing to operate the SAGE 1000 system beyond 31 December 2024 without support from SAGE South Africa would have posed a business risk, as NetOne’s licences had expired. He described the upgrade as both necessary and prudent.

Rubaya further contended that it was misleading for the prosecution to claim that Mushanawani acted without board approval, saying “the same board approved the Strategic Plan for 2025, which included the upgrade of the SAGE system, which is currently operational.”

Mushanawani, who had been on remand since his arrest in September, consistently denied the allegations.

Earlier, his legal team wrote to the Zimbabwe Anti-Corruption Commission, alleging that unnamed rivals had orchestrated his arrest in what they described as a well-planned attempt to remove him from NetOne.

More: ZimLive

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