|
Paidamoyo Muzulu
THE Reserve Bank of Zimbabwe (RBZ) should recover the US$2 million it gave AMG Global to acquire a 100% stake in T&N (UK), which holds the Shabanie Mashaba Mines Holdings share warrants registered in the UK after its failed acquisition bid in the English courts, parliament heard on Wednesday.
SMMH is owned by embattled South African based businessman Mutumwa Mawere. The company was put under administration by Justice minister Patrick Chinamasa in 2004 after Mawere was accused of corruption and externalisation in relation to mining receipts from the two mines.
Chinamasa used the contentious Reconstruction of State Indebted and Insolvent Act to wrestle control of Mawere’s sprawling empire whose flagship was the Shabanie and Mashaba Mines.
The minister had a flopped bid to gain possession of SMMH share warrants in the UK after securing US$2million from the central bank to purchase SMMH share warrants from T&N which holds them as surety against Mawere’s debt.
Mines and Energy Portfolio Committee chairman Edward Chindori-Chininga recommended that the “RBZ should collect the funds (US$2 million) advanced to AMG to acquire T&N rights in respect of SMMH as AMG lost its bid to gain control of SMM Holding in the UK Courts and surrendered the Bearer Share Warrants in accordance with the UK court decision”.
The committee has asked Chinamasa on three occasions to avail the share warrants proving the purchase of the said shares, but he has failed to do so despite repeated assurances to the committee.
“Three letters signed by the clerk of parliament were delivered to the minister and signed for but there has not been any response to date,” the report said.
Chindori-Chininga’s committee also recommended that the executive does a due diligence audit of SMM and its associated companies after it was placed under reconstruction since the administrator seems to have stripped the companies of assets in an opaque manner.
“The executive should carry out an audit specifically looking at: disposal and sale of assets claims, mining equipment and material from AA mines, disposal and sale of associated companies, legal and professional fee costs that relate to payments made to the administrator and legal advisor under Reconstruction of SMM.”
State-appointed administrator Arafas Mutausi Gwaradzimba is alleged to have disposed of mining claims, houses and other mining equipment belonging to SMM and illegally paid himself substantial amounts.
“The administrator had disposed some company assets such as mining claims (gold claims) and several subsidiary companies of SMM whilst Mawere was still under specification. During the enquiry, the committee came across information relating to the application of the payments that were made in Zambia to the administrator Gwaradzimba by TAP Building Products, a company registered in Zambia that was placed erroneously under reconstruction only to be removed after a court challenge by African Resources Ltd, the shareholder of the company,” the report said.
Gwaradzimba was paid US$345 000 and made payments of about US$700 000 to (Edwin) Manikai and other TAP board members.
Shabanie and Mashaba mines have since collapsed under the administration of Gwaradzimba and the mines are flooded. Employees have gone for years without pay and no investor seems interested in investing in the contested mines.
 |
Show/Hide comments
Show/Hide comment form
