FMI indigenised: Govt

to establish an Employee Share Ownership Scheme as part of the terms for the sale agreement with BP-Shell — Government has said a trust was registered.
Government said this in an opposing affidavit filed by the Ministry of Youth Development, Indigenisation and Empowerment in response to a High Court application by the former BP-Shell employees, requesting nullification of the deal since FMI had not yet set up an Employee Share Ownership Scheme.
The founding application had cited Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere as first respondent and FMI Zimbabwe as second respondent. Minister Kasukuwere, represented by Mr Emmanuel Ngwarati, said the application by the workers had no basis since the ESOP was in the process of being established.
Reads part of the opposing affidavit: “Second respondent has fulfilled the condition set in the approval letter dated February 28, 2011. I confirm that second respondent submitted a Deed of Trust for the Employee Share Ownership Scheme, which was vetted and deemed to be compliant with Section 14 of the Indigenisation and Economic Empowerment Regulations (2010) as amended.
“I further confirm that the second respondent was notified of this approval through the National Indigenisation and Economic Empowerment Board. The Deed of Trust has since been registered and implemented.”
The ministry has also indicated that preparations for an official launch of the Employee Share Scheme are  underway.
In response, FMI Zimbabwe confirmed that the Zuva Petroleum Employee Share Trust was set up and registered with the Registrar of Deeds on July 6 this year.
The company also contends that the four applicants (Don Nyamande, Kingstone Donga, Sharon Otoo and Emanuel Masendeke, as first, second, third and fourth applicants, respectively) are not qualified “to participate under the trust or assume powers vested on trustees”. 
The papers show that first and second applicants had their employment contracts terminated earlier this year, while third applicant is still engaged with Zuva. But she is in line for retrenchment and, as such, can still benefit from the Employee Share Ownership Scheme. The papers also show that the fourth applicant is not an employee of Zuva, but has been previously engaged as a contractor.
The ministry has also said it is not bound to recommendations by NIEEB. This follows earlier recommendations by NIEEB for reversal of the deal which the applicants cited as part of their supporting arguments.
“The minister (Kasukuwere) is not bound to adhere to the recommendations of the NIEEB . . . The document therefore does not reflect the true position of the ministry, as it is merely an opinion and recommendation but not the final decision of the minister,” reads the document.
They have also indicated that they will launch investigations into how the document fell into the hands of the applicants.
“ . . . that document is an internal document drafted upon request of the minister and is not for public consumption. How the applicants procured the document or its contents is subject to inquiry.”
Last year, Masawara plc (through its subsidiary FMI Zimbabwe) acquired BP-Shell Zimbabwe assets and has since commenced rebranding the service stations to Zuva Petroleum.