The Observer Issue 13 | Page 5

The Observer - 16 February 2014 - 5 Goche okayed $11m Air Zim insurance scam Correspondent CABINET Minister Nicholas Goche has been sucked into the Air Zimbabwe scandal in which top management has been accused of defrauding the airline of nearly $20-million in an insurance scam. A letter submitted to an Air Zimbabwe internal disciplinary hearing shows that Goche authorised the contentious transactions in April 2009 when he was the minister of transport and infrastructure development. He is now minister of public service, labour and social welfare. The airline has been rocked by the scandal that resulted from its appointment of Navistar Insurance Brokers in 2009 to handle the insurance of its planes. Disciplinary ¬hearings against senior managers are in progress. The insurance transactions are said to have violated the airline’s tender regulations. There are claims of premiums being “fraudulently” overcharged by €5.1-million over a fouryear period. The letter signed by Goche and addressed to the then group chief executive Peter Chikumba is dated April 3 2009 and is on the transport ministry’s letterhead. It reads, in part: “Further to the letter from the permanent secretary for transport and infrastructure development dated March 25 2009 authorising Air Zimbabwe to make payment for the above through Colemont Insurance Brokers, this letter serves to authorise Air Zimbabwe to make placement of the necessary insurances directly on to the international market. Subsequent thereto, the necessary waivers in respect of this unavoidable administrative action shall be secured.” Last week, Transport Minister Obert Mpofu fired all the boards under his ministry for non-performance. This included the Air Zimbabwe board led by Ozias Bvute. Contacted for comment, Goche promised to meet the Mail & Guardian b ]Y