Honour pledges, mining firms told

Tendai Mugabe and Lloyd Gumbo Harare Bureau
THE Office of the President and Cabinet has said all mining companies must honour their pledges and operationalise the 59 Community Share Ownership Trusts launched by President Mugabe over the past three years.
This is in line with Statutory Instrument 114 of 2011, which requires mining companies complying with indigenisation and empowerment regulations to dispose of shares to designated entities, with at least 10 percent of the shareholding going to CSOTs.

Government sources yesterday confided that the CSOTs were established in terms of the law and President Mugabe expected them to abide by their terms of reference and for relevant companies to support them.

This follows deepening mystery surrounding establishment and the operations of the $50 million Marange-Zimunya Community Share Ownership Trust launched by President Mugabe on July 25, 2012.

Last week, diamond mining companies in Marange told Parliament that they were unaware of the existence of the Marange-Zimunya CSOT and they had not made any financial pledge towards its implementation.

When President Mugabe launched that trust, it was said five diamond miners pledged $10 million each to its operationalisation.
However, the companies made conflicting claims before Parliament, alleging they were unaware of the trust, that they had been directed to deposit the money elsewhere, or were told by senior government officials to put up $1,5 million each over a five-year period.

Yesterday, well-placed sources said the miners and any government official could not now plead ignorance of the trust. “No one should claim that he or she is not aware of the CSOTs because this is a government programme governed by the laws of the land,” said one source.

Another added: “President Mugabe’s position is that if mining companies in Marange say they have not made any pledge, they must make those pledges now in line with the provisions of the law.”

Former Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere yesterday said all responsible ministries were involved and represented during establishment and launching of all CSOTs.

This has thrown the spotlight on former Mines and Mining Development Minister Dr Obert Mpofu who has claimed he was in the dark about the Marange-Zimunya CSOT.

Following the claims by diamond miners in Parliament, analysts have questioned what Dr Mpofu advised President Mugabe when the allegedly bogus trust was formed.

In an interview yesterday, Minister Mpofu – now in charge of Transport and Infrastructural Development – again declined to shed further light on what took place during his stint as mines chief. “Talk to the miners. I am Minister of Transport. Why don’t you talk to the Minister of Mines? These are official issues. Miners have already spoken so what else do you want?” he asked.

Minister Chidhakwa did not answer his phone when contacted for comment.
Dr Mpofu was conspicuously absent at the launch of the Marange-Zimunya CSOT.

He, however, attended President Mugabe’s launches of other trusts.
Dr Mpofu was in attendance when President Mugabe launched the Chegutu, Mhondoro-Ngezi and Zvimba CSOT in 2011 where he bemoaned how mining houses were failing to meaningfully benefit local communities.

He was also there at the launch of seven CSOTs by President Mugabe in October 2012.
Incumbent Minister of Youth, Indigenisation and Economic Empowerment Francis Nhema could not be reached for comment but an official at the ministry – speaking on condition of anonymity – said they had already instructed the National Indigenisation and Economic Empowerment Board to establish the reasons for the conflicting facts coming from the diamond mining companies and the ministers concerned.

“What the ministry wants is to get facts. There is now confusion on what happened because of these conflicting statements.
“NIEEB will be expected to get certificates, if any, or minutes of what transpired during those alleged meetings,” said the senior ministry official.

Zanu-PF legislator for Gokwe-Nembudziya, Cde Justice Wadyajena, who chairs the Youth, Indigenisation and Economic Empowerment Parliamentary Portfolio Committee, yesterday said they would produce a report on their findings during deliberations on the diamond saga.