Zimpapers Logo

Media reports this week on the status of Community Share Ownership Trusts launched by President Mugabe in the past two years are very disturbing. These trusts were launched with great fanfare. The ministries of Mines and Mining Development; and Youth, Development, Indigenisation and Empowerment then led by Dr Obert Mpofu and Cde Saviour Kasukuwere were deeply involved. The then Ministry of Local Government, Rural and Urban Development and the President’s Office were part of it.

Community Share Ownership Trusts were established in terms of Section 14B of the Economic Empowerment (General) Regulations of 2010 which provide that local communities whose natural resources are being exploited by any ‘‘qualifying business’’ must be guaranteed shareholding in such business.

Fifty-nine Community Share Ownership Trusts have since been launched countrywide.

Indeed, as per the law, mining companies in all 10 provinces pledged to provide seed money as part of the 51-49 percent indigenisation of the economy to empower local communities. Indeed, each time President Mugabe went to officially launch the schemes, dummy cheques were presented to represent the contributions by the companies in each province.

And these trusts, among them Tongogara, Gwanda, Unki, Mhondoro-Ngezi, Zvishavane, have transformed many communities.
In the case of the Marange-Zimunya Trust, companies mining diamonds in Chiadzwa were to contribute US$50 million.

Now we are told all this was never the case; that the companies know nothing about this; are they implying it was a hoax?
The companies told a Parliamentary Portfolio Committee on Mining last week that they did not pledge US$10 million apiece to the Marange-Zimunya Community Share Ownership Trust.

Anjin’s Munyaradzi Machacha told the parliamentary committee that they were told by then Indigenisation and Empowerment Minister Saviour Kasukuwere to contribute only US$1,5 million which they could pay over a five-year period. Mbada Diamonds chairman Robert Mhlanga told the same committee that they were never approached about the community trust and were not party to the scheme.

Dr Mpofu, who was then Mines and Mining Development Minister, this week said he was not aware of the trust which was officially launched by President Mugabe on July 27, 2012.

Cde Kasukuwere said this week that it was “dishonesty of the highest order” for anyone to deny knowledge of the share ownership scheme.
We are appalled that company executives and Government ministers can engage in these hide-and-seek games over such an important national programme. Black economic empowerment has been a key Government policy particularly since the launch of the fast-track land reform programme in 2000. It was a central plank of Zanu-PF’s electoral campaign last year.

We cannot, therefore, understand why the launch of the Marange-Zimunya Community Share Ownership Trust could be said to have been done without the knowledge of the minister in charge of mines. Personal attendance at the launch might not be an issue because ministers can always delegate. An explanation is needed.

Cde Kasukuwere will also need to clarify the legal provisions on Community Share Ownership Schemes. Is it true that he told only some companies about the Marange-Zimunya scheme but did not approach others as claimed by Mbada Diamonds? Is it also true that he told those he approached that they could contribute just US$1,5 million over a five-year period? Is that part of the “legal provisions”?

For their part, the company executives who witnessed the launch ceremony surely know that a dummy cheque represents the cheques they deposit in the bank. The oversized dummy is just for the photo opportunity.

Short of full public disclosure, they risk the unpalatable suspicion that they were playing political games hoping that some parties which are opposed to indigenisation and economic empowerment would win last year’s elections and reverse all zanu-pf programmes.

We cannot have companies playing mind games on such important national policies particularly when they feed on our finite natural resources. There is need for an urgent and thorough probe of what happened. Government needs to take a stand, even if it means embarrassing some ministers who should have the shame to resign if they misled the nation.

Similarly any companies that do not want to respect the law are free to leave the diamond fields. Those found to have been complicit in this skulduggery should be punished for today and tomorrow to send a clear message that they cannot cheat the revolution of which they are supposed to be the frontline cadres.