HARARE
–
The
permanent
secretary
in
the
ministry
of
industry
and
trade
has
retained
his
position
on
the
board
of
a
private
company
regulated
by
his
ministry,
raising
serious
conflict-of-interest
concerns
and
questions
over
compliance
with
public
service
regulations.
Thomas
Utete
Wushe,
who
was
appointed
permanent
secretary
on
October
6,
2023,
is
the
board
chairperson
of
Amalgamated
Regional
Trading
Holdings
(ART).
He
has
been
on
the
board
since
2015.
ART
owns
several
major
brands,
including
Exide,
Chloride
Zimbabwe
and
Softex.
By
continuing
to
sit
on
the
board
of
a
company
operating
in
a
sector
overseen
by
his
ministry,
Wushe
appears
to
be
in
breach
of
the
Public
Service
Act
and
Public
Service
Regulations,
which
prohibit
public
officers
from
engaging
in
outside
employment
or
business
activities
that
interfere
with
official
duties
or
create
conflicts
of
interest.
The
issue
is
expected
to
feature
prominently
at
ART’s
Annual
General
Meeting
(AGM)
scheduled
for
March
19.
ZimLive
has
seen
correspondence
between
ART
shareholder
Simon
Hayes
and
company
secretary
Abisai
Chingwecha
in
which
Hayes
proposes
Wushe’s
“removal
from
office
as
a
director
of
the
company
with
effect
from
the
conclusion
of
the
AGM.”
Hayes
is
also
calling
for
the
removal
of
another
long-serving
director,
Michael
Oakley,
arguing
that
both
men
have
exceeded
acceptable
tenure
limits.
“No
independent
director
should
serve
for
11
years.
There
is
no
possibility
that
these
individuals
remain
independent
after
all
this
time,”
Hayes
wrote.
A
legal
opinion
prepared
ahead
of
the
AGM
and
seen
by
ZimLive
describes
Wushe’s
conflict
of
interest
as
“not
merely
theoretical;
it
is
functional.”
“As
permanent
secretary,
Wushe
is
the
chief
architect
of
the
very
industrial
policies
—
import
duties,
local
content
regulations
and
trade
licences
—
that
dictate
the
commercial
survival
of
ART’s
subsidiaries,
from
Chloride
Zimbabwe
to
Softex,”
the
opinion
states.
“In
most
Commonwealth-aligned
civil
services,
an
official
moving
into
a
permanent
secretary
(accounting
officer)
role
is
expected
to
clear
their
schedule
of
all
private
sector
directorships
to
avoid
‘regulatory
capture’,
where
a
private
company
has
undue
influence
over
the
person
writing
the
industry’s
rules.
“When
a
sitting
public
officer,
responsible
for
the
impartial
regulation
of
an
entire
sector,
simultaneously
chairs
a
major
player
in
that
sector,
the
line
between
public
service
and
private
interest
becomes
dangerously
blurred.”
ART
says
it
adheres
to
the
National
Code
on
Corporate
Governance
(ZIMCODE),
which
requires
boards
to
be
independent
“in
character
and
judgement.”
However,
some
shareholders
question
whether
a
director
can
genuinely
be
considered
independent
when
his
primary
employment
involves
regulating
competitors
within
the
same
industry.
Wushe
told
ZimLive
that
he
had
disclosed
his
ART
board
position
to
“the
relevant
authorities”
at
the
time
of
his
employment,
including
the
then
industry
and
trade
minister
Sithembiso
Nyoni.
Current
minister
Nqobizitha
Ndlovu
said
he
was
unaware
Wushe
sat
on
the
board
of
a
private
company.
“If
you
are
correct
(about
board
position)
my
view
is
that
the
wise
thing
to
do
would
have
been
to
leave
the
board
at
the
time
of
his
appointment
to
the
ministry,”
Ndlovu
said.
Wushe
conceded
that
it
was
“only
after
you
asked
these
questions
that
I
noticed
the
possibility
of
exposure,”
but
insisted
he
was
“not
aware
of
any
injury
caused
by
my
role
to
any
private
entity
since
being
appointed
permanent
secretary.”
He
hinted
that
he
would
soon
relinquish
the
directorship.
“As
you
are
already
aware,
my
board
appointment
predates
my
appointment
as
permanent
secretary.
This
is
therefore
a
legacy
issue
and
is
being
managed.
Before
long,
a
solution
will
be
arrived
at,”
he
said.
He
added
that
over
the
past
two
years
he
had
focused
on
“doing
a
good
job
and
ensuring
that
we
deliver
real
growth
for
all
industry
players
in
a
fair
and
transparent
manner.”
“The
good
news
is
that
this
matter
will
be
resolved
in
the
next
few
weeks,
especially
now
that
there
are
new
shareholders
and
an
upcoming
AGM.
This
matter
will
take
care
of
itself
before
long,”
Wushe
said.
Wushe’s
tenure
on
the
ART
board
has
coincided
with
a
period
of
sustained
financial
decline
for
the
company,
worsened
by
a
$6
million
acquisition
of
Paper
&
Tissue
assets
in
2022
—
a
venture
the
company
later
abandoned
“following
a
prolonged
period
of
underperformance.”
ART’s
annual
revenues
fell
from
US$46.9
million
in
2018,
the
year
preceding
de-dollarisation,
to
US$28.3
million
in
2025.