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Fungai Lupande Court Reporter
Air Zimbabwe Holdings (Pvt) Ltd appointed Navistar Insurance Company to cover its assets as an emergency measure following the placement of Zimre Reinsurance Company (Pvt) Ltd on sanctions list, the court heard yesterday. This emerged during the trial of two former Air Zimbabwe bosses accused of defrauding the airline of €5 175 593 and US$502 748 in an alleged insurance scam.

Airzim former secretary Grace Pfumbidzayi (49) and former group CEO Peter Chikumba (59), jointly charged with criminal abuse of duty as public officers and fraud, pleaded not guilty to the charges.

In her defence outline tendered in court Pfumbidzayi argued that the placement of insurance with the international markets was for the benefit of the State and the nation at large in a time of emergency without going through the cumbersome tender procedures.

“The appointment of Navistar Insurance under these circumstances was lawful.
“Prior to March 16, 2009 Marsh Insurance Brokers (Pvt) Ltd acted as the local insurance broker to Air Zimbabwe Holdings (Pvt) Ltd placing the risk with Nicoz Diamond Insurance Zimbabwe who in turn reinsured the risk to Zimre Reinsurance Company who further reinsured the risk with the international market via London aviation reinsurance brokers, Willis Aviation.

“On an unknown date but prior to January 31, 2009 Zimre Reinsurance Company (Pvt) Ltd was placed on the sanctions list thus the reinsurance cover on Air Zimbabwe Holdings (Pvt) Ltd’s aeroplanes ceased at midnight on January 31, 2009,” read part of the defence outline.

Meanwhile, Chikumba in his defence said the allegations were malicious, frivolous and vexatious.
“Air Zimbabwe Holdings (Pvt) Ltd is being abused and misused by powerful politicians in a bid to drag my name into alleged clandestine transactions such that I lose my right to claim my terminal benefits,” he said.

Ministry of Energy and Power Development Permanent Secretary Mr Partson Itayi Mbiriri, while testifying in court last week said he recalled in 2009 when Air Zim approached the Ministry with a request of assistance with reinsurance cover.

“They traditionally used Zimre who will in turn insure with Lloyd’s of London. Zimre was put under sanctions and it became impossible for it to transact the reinsurance aspect.

“The request was to the extent that it was not possible under the Insurance Act for Air Zimbabwe to approach a foreign insurance company.
“I conferred with Minister Nicholas Goche and we agreed to facilitate reinsurance, it was necessary to act expeditiously. We authorised Airzim to pay the reinsurance and I wrote to the Secretary for Finance advising him on issues we had done,” he said

Mr Mbiriri added that they did not discuss the issue of tendering and was not aware how Navistar Insurance Company was awarded the tender because it was a matter within Airzim board.

“I will be surprised if someone says the ministry authorised Air Zimbabwe not to follow tender (procedures),” he said.
Prosecutor Mr Daniel Muchimbiri yesterday called the second witness, Mr Nobert Machingauta, once employed by Airzim as acting CEO.

“The only time Pfumbidzayi approached me was on March 25 in the morning, advising me that there was a problem with our premiums and that our underwriters advised her that we had no cover.

“I asked her to draft a memo to the ministry, including the problem and possible solution. The request was for us to be allowed to remit the portion to our underwriters since Zimre had failed in terms of Section 72 of the Insurance Act,” said Machingauta.
The trial continues today and the pair is appearing before Harare magistrate Mrs Fadzai Mtom- beni.