Mining row brings misery to thousands
The fight for control of Shabanie Mashaba Mines Holdings between businessman Mutumwa Mawere and Justice Minister Patrick Chinamasa has thrown at least 60000 people into abject poverty after the collapse of the company's operations.
SMM was placed under administration in 2004 amid allegations that the South Africa-based business had externalised millions of dollars. The company was placed under the administration of Arafas Gwaradzimba, and a legal battle ensured between Mawere and the government.
Chinamasa insists that SMM was illegally acquired by Mawere and remains government property, and further argues that the business tycoon plundered money from the sale of asbestos.
Last week the fight escalated, with Chinamasa telling the parliamentary portfolio committee on mines and energy that Mawere would never retain control of SMM and boasted to stunned parliamentarians that only Chinese investors would be allowed to take over the company.
But in the six years the fight has been raging, thousands of people who have been surviving on mining in Zvishavane, Mashava and surrounding areas have hit hard times. Most of them have reportedly turned to gold panning and vending to make ends meet. Human-rights groups estimate that the closure of the mines has affected 60000 people.
At their peak, the mines used to directly employ more than 10000 people but since the government took over, there has been a dramatic decline, blamed on poor management and lack of funding.
Former workers at the Zvishavane mine told the Sunday Times last week that the mines had been flooded with water, damaging millions of dollars worth of equipment. Massive investment will be needed to revive operations.
Electricity was switched off at the mines due to non-payment of debts and this had worsened the situation.
The fight between Mawere and Chinamasa is seen as a political wrangle between individuals. A parliamentary committee member said last week the fight was really between Mawere and powerful Defence Minister, Emmerson Mnangagwa, who leads a faction of Zanu-PF campaigning to take over from President Robert Mugabe.
Mawere used to enjoy a good working relationship with the defence minister, who reportedly helped the businessman acquire SMM.
But the two fell out, leading to the fight that has caused misery to tens of thousands.
The Movement for Democratic Change (MDC) last week issued a statement lamenting the suffering of the people.
"For six years now, these workers, their families, together with surrounding communal lands who depended on the mining towns have been at the receiving end. Shabanie and Mashava mines indirectly support surrounding farmlands that use Zvishavane town as the main supply centre.
"The reduction of these mines into dead capital means people in the surrounding areas cannot tap into it for support. Workers have lost their incomes and their families can no longer afford the lifestyle they were used to before the de-specification of Mawere in July 2004.
"It is callous for government - whether inclusive or exclusive - to behold such suffering and to take no remedial action. It is equally heartless for any government to ignore the impact of such selfish and unproductive squabbles on the women, children, and underprivileged in our society.
"Chinamasa must come clean and tell the nation that the dispute lies squarely between himself, Zanu-PF and Mawere - not with the inclusive government. The people of Shabanie, Gaths and Mashava deserve justice and fair play," the MDC said in the statement.
Mawere accuses Chinamasa of fraudulently taking over his companies using the Reconstruction Act, and recently told the parliamentary committee the act had never been used on any other person except him. He claimed this proved that he was being targeted by senior politicians.
However, Chinamasa insists Mawere never bought SMM in the first place, saying government had assumed full control of the mines.
"Mawere has never been the owner even on the basis of the sale and purchase agreement. We gave him de facto control of the companies, but not ownership - as ownership of SMM Holdings resides with the government of Zimbabwe, 100%."
Chinamasa said Mawere had failed to raise the $60- million needed to complete the acquisition of the company from its previous United Kingdom-based owners Turner & Newell Plc. Mawere has even tried to get help from South African President Jacob Zuma but to no avail. Mawere insists that he owns the companies.
"Could it be that the minister does not know the legal and factual ownership structure?" said Mawere.

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