Locals query Australian’s mine ownership

High Court, challenging the ownership by Mr Lee Waverly John of Kwekwe Consolidated Gold Mines and HomeStake Technical  Services.
KCGM and Homestake control several gold tributes in the area some of which include Tiger Reefs, Primrose, Chaka Plant, Globe and Phoenix, Anzac group of mines Belriverlea among others.
He is now parceling out the tributes to individuals and firms charging royalties.
Zimbabwe Miners Federation regional representative for Midlands Mr Arnold Mandaba and chairperson of the Workers Trust, Mr Cleopas Chipangura, are representing the workers in a legal challenge that is now before the High Court.
High Court Judge, Justice Bharat Patel ruled that the suit should proceed as an ordinary application as it was not urgent.
Mr John did not file responses when the matter was head.
The workers argue that Mr John took advantage of the departure of former owners, who were also of Australian origin who left in a huff at the height of the land reform programme to assume control of the mines.
In their papers, the workers, represented by Mr Albert Nyamufukudze of Phiri and Partners legal practitioners feel that there is mystery surrounding circumstances in which Mr Johns who was once declared a prohibited immigrant and deported has suddenly taken ownership of vast gold mining tributes in and around Kwekwe.
Their argument, premised on documents at hand, is that Mr John, who came into Zimbabwe on a Temporary Employment Permit in 1999, as a worker of Homestake, has suddenly become its director and as well as owning KCGM.
The workers have also lodged a complaint to the police and Immigration department, imploring authorities to make investigations on his legal status as well as how he assumed ownership of the mines.
Although regional immigration manager, Mr Francis Mabika could not divulge much information, he confirmed that Mr John had been declared a prohibited immigrant and deported.
“Mr John was deported in May 2009, but contested it successfully. The State has appealed against the deportation but in the meantime, he has been given a resident permit,” said Mr Mabika.
“He returned to Zimbabwe on the strength of the court order. On investigation, I would decline to comment on whether there are any processes being carried out now because doing so might jeopardise them.”
The workers want authorities to establish if he brought any money for him to get an investment licence from the Zimbabwe Investment Centre.
Documents indicate that on February 18, 2002, Mr John acted on behalf of KCGM to grant Homestake Mine a tribute, his own firm, which he regularised three days latter with the Registrar of Companies without company resolution.
Mr John denied any wrongdoing, saying his business transactions were approved by the Zimbabwe Investment Authority.
“I assure you the accusations you have mentioned are totally false and have no basis whatsoever,” he said.
“Nothing is irregular and my company owns both Homestake and KCGM and has ZIA approval since 1999.”
ZIA chief executive officer, Mr Richard Mubaiwa, told the police that the institution did not have records relating to KCGM.
“We do not have a record of the above company in our files and therefore we are not able to say whether it was bought by Lee John from the former directors,” said Mr Mubaiwa in his letter dated February 29, 2012.
According to a letter written by the Reserve Bank of Zimbabwe foreign exchange inspectorate Chief Inspector, Mr Onias Masiiwa was also asked to comment on Mr John by the poli-ce.
“Exchange control has no records regarding information on the investments of Lee Waverly John and his associate companies.
“On KCGM, records within the Exchange Control department have no information regarding the sell of KCGM to any investor between the years 2000 to date,” said Mr Masiiwa.
Workers also want authorities to establish if indeed Biometallurgical, an Australian registered firm Mr John have interest in,  acquired Homestake and KCGM and if so, whether statutory payments like capital gains tax were paid.
Questions have also been raised why Mr John would apply for a permanent residence to the Immigration Department in 2003 saying he was employed by Homestake instead of saying he owned it.
“I am permanently employed by Homestake Mine in Kwekwe and I feel my engineering, metallurgical and technical inputs have significantly benefited the company,” read the letter by Mr John.