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Deputy Minister Moyo

Senior Reporter—
The ownership dispute involving Shabani Mashava Mine will not distract Government from reviving and injecting working capital in the asbestos mining firm to rescue it from collapse, an official has said. Mines and Mining Development Deputy Minister Fred Moyo said there was need to separate ownership of a company and its operations to ensure that disputes relating to shareholding do not affect the smooth running of the firm.

He said this while responding to a question in the National Assembly on Wednesday.
Zvishavane Ngezi MP Cde John Holder (Zanu-PF) had asked Deputy Minister Moyo to update the House on progress regarding the re-opening of SMM that was placed under reconstruction 10 years ago after Government felt it was heavily exposed.

Kambuzuma MP Mr Willias Madzimure (MDC-T) asked if Government had resolved ownership disputes to warrant it injecting money into the firm.

“I think we must understand that ownership of a business is actually separate from viability and management of a business,” said Deputy Minister Moyo.

“If there is a dispute of ownership over an asset, it does not mean that the asset should then die.
“So, we are in this case talking of putting money into the business and sustaining that business and keeping it alive; as to who owns it, at the end is a different question.”

Deputy Minister Moyo said the mine did not close because of ownership wrangles, but it was due to viability issues.
“I am talking of the viability of opening the mine, he said. It did not close because of ownership wrangles. It closed because of issues of viability.”

Deputy Minister Moyo said his ministry had policies that aimed at opening closed mines and avoiding closure of others.
“The first policy in the Ministry of Mines and Mining Development is to open all mines that are closed,” he said.

“The second policy is to stop anymore going into closure mode. Shabani Mashava Mine has been closed I think for 10 years now under reconstruction.

“It has been under an ownership wrangle that has not helped the process of trying to recapitalise the mine.”
Zimbabwean-born, but South African-based businessman Mr Mutumwa Mawere had been over the past 10 years fighting to retain control and management of the mine after Government took over after allegations of financial impropriety.

Mr Mawere has taken his fight to Zimbabwean courts and United Kingdom and South African courts in his bid to regain authority over the mine.