Minister Under Fire for Side-lining Traditional Chiefs in Ngezi
By Staff Reporter
Minister of Industry Sekai Nzenza isunder fire from the Mhondoro-Ngezi community after she sided with Zimplats to deprive traditional chiefs from getting their 10 percent share.
The minister for industry and commerce, Dr. Sekai Nzenza, was a victim in the just ended primary elections, having lost Chikomba East constituency.
Dr. Nzenza’s ministry has during the past five years been charged with administering Zanu PF’s policy on indigenization and economic empowerment, which has been abandoned and left to gather bust within that ministry.
Tatenda Gwinji vs Zimplats and Others (HCHC 457/22 may prove to be the test case that re-determines Zimbabwe’s political economy, and economic relations between the ruling Zanu PF and its tens of thousands of supporters that came out to vote in the just ended primary elections.
It is clear that relations with the electorate will be influenced by aspirations and expectations in mineral rich communities like Chegutu, Mhondoro Ngezi or Zvimba.
In his court application, Chegutu RDC chairperson Tatenda Gwinji said the company violated the Zimplats Mhondoro-Ngezi Chegutu/Zvimba share ownership trust (CSOT) agreement signed with the community in 2011.
In 2010, government established the CSOTs as vehicles to develop and empower communities in which mineral resources are mined.
The CSOTs fell under the government’s controversial indigenisation policy.
In 2011, the Zimplats Mhondoro-Ngezi, Chegutu/Zvimba CSOT was formed after the community signed an agreement with Zimplats.
Under section 3 of the agreement, Zimplats was supposed to allot 10% ordinary shares to the trust.
In his application, Gwinji said Zimplats had reneged on the agreement.
“Despite demand by the plaintiff and other community members, the second defendant has either failed and or neglected to allot to the trust ordinary shares in the share capital of second defendant constituting 10% of the issued share capital of second defendant as provided for in Clause 3.3,” Gwinji submitted.
Zimplats mining base in Mhondoro contributes 37 percent of the Implats’ total output of 1,7 million ounces of platinum but the surrounding communities remain some of the most impoverished districts in the country.
“While Zimplats will proudly report on its corporate social responsibility initiatives in impoverished Zimbabweans communities, such initiative has not had any significant reduction pf poverty across the affected Zimbabwean communities.
“While on the other hand Zimplats holding company in South Africa has allowed its communities to transform and secure themselves socio-economically through allowing them a direct share at the platinum table,” reads a dossier detailing how Zimplats is exploiting Zimbabwean platinum with little benefit.
The leaked dossier shows that the shareholding structure of Implats, the parent company to Zimplats is controlled by South Africa and United States with Zimbabweans having an insignificant stake.
This according to the dossier means, the US$85 million dividend shared in 2021 did not benefit Zimbabwe much compared to the named countries with significant stake.
