Handling Service Faces Corruption Allegations

Nyashadzashe Ndoro – Chief Reporter

National Handling Services, a state-owned enterprise under the Ministry of Transport and Infrastructural Development, has come under the spotlight following corruption allegations involving its board chairman, Advocate Godwin Nyengedza, the executive team, and associated firms.

In an interview with Zim Now, the company—which operates at Robert Gabriel Mugabe International Airport and manages the Zimbabwe Dry Port in Walvis Bay, Namibia—denied the accusations, describing them as baseless smear campaigns.

Whistleblowers allege that Nyengedza engaged in excessive travel and lavish spending, claiming he spent more than US$140,000 on overseas trips within a three-month period late last year. He is also accused of “double dipping” by claiming allowances while demanding an additional US$6,000 for entertainment during a corporate governance trip to South Africa.

Critics further allege that employees’ salaries have been delayed while funds were diverted to finance frequent board travel and hotel stays.

NHS, however, dismissed the figures as fabrications, stating that Nyengedza’s sanctioned international trips between September and December 2024 cost US$11,341.27.

The company said the travel was necessary for benchmarking best practices in governance and was fully compliant with government protocols and Cabinet approvals. Allegations of double dipping were rejected as “without foundation and bordering on criminality.”

“For the record, the Chairman attended sanctioned international engagements between September and December 2024, with total expenses of US$11,341.27. These trips were for the purpose of enhancing governance standards at NHS through networking and learning best practices in corporate governance.

"All expenditure complied with government protocols and circulars that guide travel for state-owned enterprises. Further, all travel was approved through requisite Cabinet authorities. Allegations of ‘double dipping’ in allowances are denied and should be dismissed with the contempt they deserve,” the NHS responded.

It is also alleged that Nyengedza pressures acting executives to book board meetings at expensive hotels outside Harare, inflating fuel and travel allowances.

The company acknowledged that some meetings are held outside Harare but insisted they are combined with corporate activities to ensure value for money.

For example, in July 2025 the board held a strategy review in Bulawayo, combined with the commissioning of a school block at Majiji Primary in Matabeleland North.

NHS said board members were accommodated in “standard hotels” such as Holiday Inn Bulawayo, and stressed that all expenditures remain subject to internal and external audits.

Another major concern raised was the alleged failure to remit workers’ pensions, reportedly leaving a debt of nearly US$900,000.

The company confirmed pension arrears but said the actual amount stood at US$661,960.53 and ZWG$4.98 million as of July 2025. Management attributed the arrears to legacy issues predating the current acting executives. NHS said remittances resumed in June 2025 and some payouts dating back to 2022 have since been cleared. A debt restructuring exercise is also under consideration.

“As for employee pension contributions, remittances resumed in June 2025. Outstanding pension payments for some employees who exited in 2022 have already been paid out. The company has resolved to ensure that payouts are made in order of those who exited first,” the service department noted.

Critics further allege that the company secretary, said to be close to Nyengedza, travelled with her child and a maid at company expense, both domestically and internationally.

NHS confirmed that a policy exists allowing breastfeeding mothers to travel with a minder during official duties. Introduced in 2023 by the former HR head, the Child Minder Assistance Policy was designed to support female staff during the exclusive breastfeeding period.

"The company rejected claims of abuse and said the policy applies to all eligible employees, not only the company secretary. Allegations of European travel with dependents were labelled “false and malicious.”

Whistleblowers also claim that Nyengedza is attempting to sell NHS and the Zimbabwe Dry Port to Unifreight for US$7 million without following due process.

The company dismissed the accusation as “senseless,” stressing that NHS is a government-owned entity and no individual has the authority to sell its assets. Management insisted all transactions follow proper governance and regulatory requirements.

Concerns have also been raised about the procurement of legal services, with Maguchu and Muchada Attorneys reportedly paid over US$200,000 without going to tender, despite NHS having an internal legal department.

NHS rejected the figure and said the law firm was chosen from three proposals for its expertise in labour law, which was critical in handling the suspension of executives within strict legal timeframes. The board argued that external counsel was needed for independence and impartiality, given the involvement of outgoing executives.

Further allegations suggest that Acting CEO Philip Rambakudzibwa was handpicked by Nyengedza to shield him from scrutiny and that he failed to detect losses of over R1.3 million at the Zimbabwe Dry Port during his tenure as Chief Audit Executive.

The board defended Rambakudzibwa’s appointment, saying it was based on merit, leadership qualities, and his deep knowledge of company operations.

NHS said the dry port losses amounted to N$587,248, caused by fraud committed by a former accountant, a matter fully disclosed in the 2023 audited financial statements and discussed at the last AGM.

Whistleblowers also argue that workers’ salaries remain low and sometimes delayed while the board prioritizes travel, allowances, and perks.

The company rejected the claim, stating that staff salaries are up to date and that board fees are regulated and publicly disclosed at AGMs.

NHS highlighted achievements under the acting executives, including the revival of staff medical aid, refurbishment of staff facilities, resumption of pension payments, acquisition of equipment, and investment in community projects.