Fresh bid to regain SMM

Limited and associate companies.
Mr Mawere lost control of his business empire in 2004 after he was specified to facilitate investigations into allegations that he externalised proceeds from asbestos exports.

He was accused of externalising US$18,5 million, 628 071,84 Canadian dollars and R4 517 367 through South African firm Southern Asbestos Sales, the marketing and sales agent for SMM Holdings.
This allegedly deprived African Associated Mines, the trading arm of SMM Holdings, of working capital and affected its ability to meet its financial obligations.

In High Court application case HC4899/11, filed on May 26 2011, Mr Mawere, whose specification was lifted on May 10 last year, sought reversal of all transactions relating to his estate or businesses entered without his consent.

His firms – African Resources Limited, SMM and Turnall Holdings – were listed as second, third and fourth appellants in the latest High Court application.
The application cited Co-Home Affairs Ministers Kembo Mohadi and Theresa Makone, Mines Minister Obert Mpofu and Mr Reginald Saruchena and Mr Samson Mangoma, in their capacities as investigators.

Justice Minister Patrick Chinamasa had in 2004 tasked Mr Saruchena and Mr Mangoma to investigate the affairs of Turnall, SMM and their associates.
“I am advised and verily believe that the revocation of my specification means the control of all my assets should revert to me,” Mr Mawere said.

He argued the disposals, contracts, indebtedness, transactions relating to his estate and acts affecting directors and agents of his firms, which occurred during the period he was a specified person, should be declared void, as he had not sanctioned them.

“I have neither consented to nor approved the taking over of the administration of SMM Holdings Limited, nor the revival of the operations of African Associated Mines, Shabanie and Gaths Mine,” he said.
“Nor has second, third, and fourth applicants consented to nor approved any acts.”

Mr Mawere was deemed to partly or wholly own SMM Holdings Limited, Steelnet Zimbabwe, Turnall Holdings Limited, General Beltings Limited, Endurite Properties, Ukubambana-Kubatana Investments, FSI Agricom, Zimre Holdings, Riverridge Limited and CFI Holdings.

He said despite his despecification the mines he owned through ARL, SMM Holdings Limited and Turnall were not returned.
He said the courts had proved he was the legal owner of the firms in question and his specification did not strip him of the rights.

His bid to prevent Government from putting SMM under administration failed after the High Court dismissed his application in January 2007 on technicalities that he had no locus standi and that his investigator had not cleared him to transact.

Mr Mawere then filed an appeal with the Supreme Court seeking the nullification of the High Court ruling, but the court application was also dismissed.
In January this year, Mr Mawere made another application in the Supreme Court, challenging the constitutionality of the Reconstruction of State Indebted Companies Act. But this was dismissed on the technicality that it lacked merit.

Mr Mawere had earlier lost a High Court case in which he was challenging his specification by Government. In the ruling Justice Tendai Uchena ruled the businessman’s conduct warranted investigation.
Testifying before a Parliamentary Portifolio Committee on Mines this year, Reserve Bank Governor Dr Gideon Gono said the SMM saga was not a matter beyond resolution.

The governor called on Mr Mawere to stop attacking the reconstruction and prevention of corruption legislation, saying this was tantamount to attacking the legislators who passed them.
Justice Minister Patrick Chinamasa argued that Mr Mawere did not own SMM as he had not used personal money to buy it from its previous British owners, which Mawere disputed.