Mandiwanzira, who is the Member of Parliament for Nyanga South, is alleged to have awarded an audit contract to Megawatt Company in which he had interests without going to tender.
He is alleged to have further instructed NetOne to pay $4 million for the service and $1 million for consultancy.
His lawyers said Megawatt offered the consultancy at no cost to the government and this led to the recovery of tens of millions of dollars for NetOne.
Mandiwanzira is also alleged to have seconded Tawanda Chinembiri to the Posts and Telecommunication Regulatory Authority of Zimbabwe board without following the due process.
POTRAZ is reported to have lost $35 000 through allowances to Chinembiri.
Mandiwanzira’s lawyers say no corporate governance principles were violated.
The former minister is expected to spend the night at Matapi Police Station in Harare.
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