Asa board jets in

Africa Moyo
ASA Resources Group (formerly Mwana Africa) board is expected in Bindura this week to clear the air after the recent crisis where more than US$4,3 million went missing at gold producing unit, Freda Rebecca.

The scandal — which involved individuals seconded by the company’s largest individual shareholder, Mr Yat Hoi Ning — later claimed the scalps of Mr Yim Kwan (finance director), Mr Edmund Zhang (former chief procurement officer) and Mr Yuan Hu Ching (non-executive director).

While the former chief executive officer Mr Yat Hoi Ning holds a 7,6 percent stake in the group, China International Mining Group (CIMGC), the biggest shareholder,has 16,2 percent equity.

Last week, Asa company secretary Mr Ian Barry Dearing told The Sunday Mail Business that the board will try to mend the reputational damage caused by the axed directors.

“The board of Asa intends to meet in Bindura next (this) week to pull together a number of threads and plan the next steps in consolidation of the group.

“I hope that my colleagues in Bindura will have prepared additional background information to enable detailed planning of a new project, to benefit part of the community in Bindura, to get underway,” said Mr Dearing.

“I will share details of this planned project with you once I have the relevant board approvals (but) the present position is that both BNC and FRGM are carrying on business as usual to try and continue to make good any damage which was done to their businesses and affairs by external and internal interference from persons who no longer have any role with the companies or the group.”

Though Asa reported that US$4,3 million could not be accounted for, sources said more than US$15 million could have been siphoned.

According to the mining group, the controversial shareholders, who were recently reported to be plotting a comeback, have not been heard of since the scandal blew up.

CIMGC and Mr Yat are believed to be planning to requisition an extraordinary general meeting that is designed to turn the tables against Mr Toindepi Muganyi, the interim CEO of Asa and CEO of Freda Rebecca; and Mr Batirai Manhando, the interim executive director.

The duo, according to the Chinese shareholders, is responsible for their woes. A recent report leaked from the company actually accused Mr Muganyi of prejudicing Freda Rebecca US$7,7 million following the acquisition of allegedly overpriced, second-hand ball mills for the Toi mills number 4,5 and 6 in April last year.

He was also accused of doing so “without following the approval and reporting procedures of the board of directors of FRGM and Asa”.

The total expenditure for the ball mills is said to be over US$11,7 million when suppliers of brand new ones in China, including installation with equivalent production capacity at Engineering, Procurement and Construction (EPC) terms, might have cost approximately US$4 million.