Correspondent|Transport minister Joe Big Matiza on Tuesday dissolved the Central Mechanical and Equipment Department (CMED) board with “immediate effect.”

In a letter written to board members by Matiza, the board was dissolved after consultations between the minister and President Emmerson Mnangagwa and the dissolution was in order to “pave way for the re-organisation of the company,”

A copy of the letter which is dated March 5 2019 reads:

“Following due consultations with His Excellency the President of the Republic of Zimbabwe, it has been agreed that the Board of Directors for (CMED) (Pvt) Ltd be dissolved. The dissolution is with immediate effect,” reads part of the letter.

Despite, the ‘diplomatic’ wording and reasons stated in the letter of dismissal, our sources revealed that Mnangagwa was irked by reports of rampant corruption within the parastatal.

As reported last week, the CMED was probed for undervaluation and hiring of the outsourced vehicles to the top Ministry of Mines officials.

“The CID is interested in establishing why the CMED would hire cars sourced from individuals to give the directors after they had purchased official ministry vehicles.

“There is strong suspicion that these cars that were hired belong to individuals who are closely associated or related to top CMED officials. It is clear there is a case of corruption,”our source said then.

CMED allegedly hired six luxury vehicles to the Ministry of Mines executives at a cost of $24 000 per month.