Cresta MD resigns amid scandal

Brian Benza | Friday December 2, 2016 16:17

Makaya’s resignation follows reports of misappropriation of funds at the company which resulted in the chief finance officer, Valentine Mganga dismissed from work last month.

In a statement, Cresta board chairperson, Maria Nthebolan said the process of identifying a new managing director and chief finance officer to lead the business will commence shortly.

“In the meanwhile, Glenn Stutchbury and Chipo Mandela will continue to act as managing director and chief finance officer respectively.

“Investigations regarding the irregularity involving the former chief finance officer of the company have progressed significantly and are expected to be completed soon,” she said.

Last month Cresta Marakanelo announced that it had roped in the police to investigate the alleged misappropriation of funds at the company.

The chairperson previously told Mmegi that the case involved some P2.3 million that was missing at the company.

Sources in the industry however say the missing amount could be as high at P20 million.

Cresta instituted the investigations in October, shortly after announcing their results for a period in which the company declared a four-thebe per share dividend. Despite the cautionary statement by the board, Cresta’s shares have remained largely unmoved on the BSE closing yesterday’s trade at 131 thebe a share.

The company, which runs over 10 hotels in Botswana and Zambia, achieved revenues of P159 million in the six months ended June 2016. Profit from operations was P16.4 million up 16% from P14.1 million registered in the same period last year.