Cresta suspends MD, CFO

SHARE   |   Monday, 17 October 2016   |   By Kabelo Adamson
Makaya Makaya

This week the share price of the embattled hospitality group Cresta remained stable amid reports of alleged misappropriation of funds by the company executives. On Monday, Cresta board chairperson, Maria Nthebolan moved to suspend Chief Executive Officer, Tawanda Makaya and his Chief Financial Officer, Valentine Mganga over some irregularities which have made the company to launch investigations into the matter. Cresta Marakanelo – operators of series of hotels and lodges country – issued a cautionary statement on Monday to the effect that the two have been suspended from duty pursuant to investigations that are underway involving Mganga. Though the statement does not link Makaya to such irregularities, the two executives, it emerged, had formed a very suspicious close relationship that could have led to the implication of the Chief Executive in the mayhem. As the news of suspension of the top management broke, investors seemed to have not lost confidence in Cresta as its share price closed the week cruising in black. By close of business on Friday, Cresta shares were trading at 131 Thebe share with no single transaction having taken place on the counter. A source told this publication that he would not be surprised because the two have become very close. Mganga previously worked at Botswana Telecommunications Corporation (BTC), as a Senior Internal Auditor. According to those close to the matter, funds running into millions of Pulas have gone missing. Makaya, a qualified chartered accountant, has been the Managing Director of Cresta since 1996 having previously worked as Group Finance Executive for TA Holdings – a Zimbabwean-based holding company – which holds a significant stake on the BSE-listed Cresta.