SMM lawyers threaten ZMDC

Development Corporation to be stopped from assuming control of the asbestos mining firm.
The lawyers representing SMM Holdings, a London registered firm, have written to ZMDC threatening legal action if the company proceeds to take over the management of the asbestos firm.

Government took over the running of SMM in 2004 from South African-based Zimbabwe businessman, Mr Mawere, after it was felt the mining firm was heavily exposed. But ZMDC chairperson Mr Goodwills Masimirembwa shot down the threat, saying as ZMDC, they were carrying out Government mandated task.
He said Government, through the Ministry of Mines and Mining Development directed them to take control of the mine, save jobs and enhance the economic recovery of the country.

In their letter, SMM lawyers said ZMDC had no lawful authority to take control of the asbestos firm.
They argue that they would soon institute a court action challenging the transfer of shares from SMM to ZMDC. The lawyers submitted that a United Kingdom court had settled the matter when it ruled that

Mr Mawere’s firm, Africa Resources Limited was the legitimate owner of the firm.
“Furthermore, you are hereby required to furnish a written undertaking that you will not implement the proposed take over or commence any mining activities at SMM pending the outcome of our clients’ application to set aside the transfer of any shareholding ZMDC may have obtained in SMM, which application will be launched shortly,” read the letter.

“Should the aforesaid undertaking not forthcoming, our clients will have no alternative but to launch the appropriate interdict application and seek a punitive order as to costs as between the attorney and own client scale against ZMDC. Our clients’ rights remain reserved.”