Kusile RDC gives Asmara Timbers green light to harvest timber in Lupane

Dumisani Nsingo, Senior Business Reporter
KUSILE Rural District Council in Lupane and the Forestry Commission have given Asmara Timbers a reprieve to harvest timber from the local authority’s concession after the company managed to secure a partner to inject capital into its operations.

KRDC chief executive officer Mr Christopher Chuma confirmed that the local authority through the Forestry Commission has agreed to give Asmara Timbers a green light to resume timber harvesting at Zinapi-Tshongogwe concession.

“We have given Asmara Timbers a temporal reprieve after it sought a partner and a client to purchase its timber. It will, however, be obliged to pay our debt as well as their present obligation for logging. We had written to Forestry Commission as managers of our concession expressing our dissatisfaction over Asmara Timbers’ failure to meet contractual obligations and because the company was also failing to pay its fees to the department, Forestry Commission had no option but to cancel its licence,” Mr Chuma said.

The Forestry Commission had cancelled Asmara Timbers’ licence for breaching part of the contractual obligations which entailed failing to pay KRDC’s dues for the timber harvested in its concession as well as under-logging. The company had also defaulted in payment of monthly fees to the Forestry Commission.

The local authority had threatened to terminate a standing five-year contract, which was due to lapse on 30 April between itself and Asmara and vowed not to renew it further hinting that it was going to start exploiting the timber on its own.

KRDC is accusing Asmara of under-logging over a period of time, in contradiction of the addendum on the memorandum of agreement made and entered into by the two parties in 2011.

In one of its lowest timber harvesting month, Asmara Timbers harvested 26 476 hectares and the local authority realised a paltry $773 from the proceeds.

Clause 19 of the agreement states that: “Notwithstanding any clause in the agreement should the concessionaire fail to exploit any forest produce for any period during the duration of this agreement, the Commission requires it to pay and the concessionaire shall pay the council a sum of money equivalent to 150 cubic metres per month and to the Commission any fee due for that period.”

Mr Chuma said the local authority would consider renewing Asmara Timbers’ contract based on improved performance and the ability to pay its debt as well as meeting contractual obligations.

Asmara Timbers judicial manager Mr Chrispen Mwete of C Mwete and Company confirmed that the company had found a partner to assist it in its timber logging operations.

“I am meeting the two parties which are involved in the contract but as I speak harvesting has already started,” Mr Mwete said.

In November, KRDC terminated a contract with Rise Gate Timber, which was operating at its Shabu-Manase concession.

In 2010, the local authority was also forced to cancel Platinum Timbers’ contract after the company failed to pay royalties amounting to about $120 000 accumulated over a period exceeding a year.