The Postal and Telecommunications Regulatory Authority (Potraz) director general Gift Machengete diverted over $1 million to Phillip Chiyangwa’s ZIFA.

This was all on the alleged orders of President Emmerson Mnangagwa.

The development has seen Mr Machengete denying diversion. He said the money was a loan.

The money was taken from the Universal Services Fund (USF) to bailout the Zimbabwe Football Association (ZIFA).

Machengete said, “these accusations are unfounded and may be driven by mere speculation, lack of information or outright malice. For instance, claims that USF funded the Zimbabwe Football Association is baseless. No funding was ever provided to ZIFA by USF. Part of the confusion stems from the failure to distinguish POTRAZ from USF, which are two separate statutory bodies. Hence, where POTRAZ bailed out ZIFA with a loan for the national soccer team`s participation at the Africa Cup of Nations some sections of the society viewed this as USF funding non-core activities.

NewsDay quotes sources saying Philip Chiyangwa approached then Minister of Sport Makhosini Hlongwane seeking funds for the Warrior’s trip to Gabon. Hlongwane approached then Vice President Emmerson Mnangagwa who then ordered Potraz to pay Zifa $1 million.

A source said that the money which is meant for telecommunications infrastructure development, was eventually written off by Potraz.