The Mutare City Council suspended George Mundembe to facilitate investigations into alleged irregularities in procuring raw materials for the company.
He was arraigned before a disciplinary hearing on March 13 2009 and found guilty of the charges, and the committee recommended his dismissal.
Loice Matanda-Moyo, the Labour Court president, however, threw out the city councils appeal for lack of merit and ordered the reinstatement of Mundembe.
In her ruling Matanda-Moyo noted: The respondent was leading the company during abnormal periods, which required people of high mental prowess in order to survive. The arbitrator found that the board approved of what the respondent was doing and the period under review was such that it was impossible to follow the rules because of massive fluctuations in the Zimbabwe dollar.
“However, the transaction in question was paid in United States dollars which was a stable currency,” said Matanda-Moyo.
The Labour Court noted that Pungwe Breweries had sanctioned Mundembe to buy foreign currency from the black market as well as maize from unauthorised dealers.
“The appellant was aware at all times that foreign currency was being purchased to buy raw materials, hence instructions or authorisation by the board rendered the company policies suspended,” said Matanda-Moyo.
She ordered Mutare City Council to reinstate Mundembe to his former position, or pay him damages.
It is alleged that Mundembe purchased 28,8 tonnes of maize from GMB, without raising the necessary documents, and received US$7 200 payment – yet the transaction was in Zimbabwe dollars as per the invoices from GMB.
It was further alleged that Mundembe made verbal agreements for the purchase of maize from a Ms Chikuruwo at a higher price than the prevailing market rate, and no requisition nor purchase orders were raised.
Mundembe was then dismissed from work and ordered to pay back Pungwe the sum of US$5 400.
The case was referred to a labour officer who failed to conciliate before it was taken for arbitration that ruled in favour of Mundembe.
Meanwhile, Makoni South MP, Pishai Muchauraya, facing fabricated charges of undermining the authority of the President, has applied at Murambinda Magistrates court in Buhera for his case to be referred to the Supreme Court.
A magistrate is expected to make a ruling on 28 December, 2010.
Post published in: News