Hospital accountant demoted for failing to detect US$19,000 fraud he exposed

A Banket District Hospital accountant who exposed a US$19,000 fraud by three subordinates has lost his Labour Court appeal to overturn a two-year demotion and transfer, with the court ruling that reporting theft does not excuse supervisory negligence.

Webester Zimbume, a district accountant with an unblemished disciplinary record spanning more than two decades, discovered missing funds while reconciling accounts at Banket District Hospital in Zvimba, Mashonaland West. Five days after noticing declining revenue on March 21, 2025, he reported suspected fraud to the District Health Officer. A physical cash count conducted on April 4 confirmed that US$19,000 could not be accounted for.

The missing money stemmed from a scheme operated between December 2024 and March 2025. Accounting assistant Luckson Dzeka and accounts clerks James Koroni and Marlon Kaguda manipulated banking records to conceal unbanked hospital fees, matching current banking against figures carried forward from previous master receipt books. The Banket Magistrates Court subsequently convicted all three subordinates of theft of trust property in October 2025, with Zimbume providing instrumental testimony for the State.

Labour Court Dismisses Zimbume’s Appeal Over Supervisory Duties

Even though he played a part in bringing the theft to light, Zimbume was hit with separate disciplinary charges for omitting to oversee his staff, carry out routine inspections, and make certain that proper reconciliation and banking protocols were adhered to. During his disciplinary hearing, he admitted he failed to perform his duties properly in January and February 2025, conceding that he did not verify receipts against master receipt books and banking slips because he was busy.

Labour Court judge Justice Bridget Chivizhe dismissed Zimbume’s appeal against the Health Service Commission’s December 29, 2025 decision, upholding both his conviction and penalty.

The question is therefore not whether the appellant was responsible for the fraud. He was not. The question is whether he failed to exercise the supervision required of him.

Justice Bridget Chivizhe, Labour Court judge

The court rejected Zimbume’s arguments that he was being penalized for the crimes of his subordinates or that his disciplinary finding lacked evidence. Justice Chivizhe noted that Zimbume’s own admissions during the hearing provided sufficient backing for the misconduct finding under the Health Services Regulations.

Chinhoyi Transfer and Demotion Upheld After Mitigation Review

Zimbume also challenged his punishment as disproportionate, pointing out his long service and clean record, and argued that the employer breached the parity principle because an accountant facing similar charges at Gweru Provincial Hospital received only a reprimand. The Labour Court dismissed the inequality claim, ruling that Zimbume failed to provide sufficient details regarding the Gweru case to establish materially similar circumstances.

As for the punishment, the disciplinary body moved Zimbume down to the post of accounting assistant for a period of two years and reassigned him to Chinhoyi Provincial Hospital so he could be subjected to stricter oversight. Justice Chivizhe observed that while the regulations permitted dismissal for gross incompetence involving public funds of that magnitude, the employer instead chose a measured sanction.

The penalty reflects a measured balancing of the very mitigating factors the Appellant relies upon.

Justice Bridget Chivizhe, Labour Court judge

The court made no order as to costs, noting that Zimbume ultimately uncovered the concealed fraud and that his appeal was neither frivolous nor vexatious. Five days after noticing declining revenue on March 21, 2025, he reported suspected fraud to the District Health Officer.

Keep reading