Speculators warned

Kasukuwere yesterday issued a stern warning against speculators and Zimbabweans being used as fronts for foreign investors whose primary objective is to exploit the country’s mineral resources.
He said the Government had taken a special interest in the transfer of shareholding and would ensure that national interests came ahead of personal interests.
This comes in the wake of a controversial transaction involving the alleged sale of special grants between a local firm, Apex Petroleum Company (Private) Limited and Continental Coal Limited of Australia.
The special grants for Lusulu Coal Fields near Binga were allegedly sold for US$18 million in a deal in which Dr Sydney Gata acted as an agent for Apex Petroleum.
Minister Kasukuwere said the indigenisation crusade was aimed at empowering Zimbabweans who for years were disadvantaged and were now being given an opportunity to play a part in the mainstream economy.
“My ministry has remained very alert regarding this particular transaction and we take a keen interest in the transfer of shareholding.
“What this transaction has shown is the value of our mineral resources and we cannot just stand by when an individual trades off rights in a clandestine manner as in the case of the Apex transaction.
“The decision to provide resources to the people does not give them the licence to engage in speculative behaviour. It is not in the national interest and neither does it promote empowerment. Some of the players involved are very senior citizens of this country and they could do all of us a favour by behaving responsibly.”
Dr Gata has, however, denied being used as a front and instead pointed out that he was working as a consultant for a power project at Lusulu Mine.
He told Herald Business that he was invited by South African-based Zimbabwe businessman Mr Mutumwa Mawere to Cape Town to discuss a coal mining and power generation project.
Dr Gata said he was assured that Minister Kasukuwere had cleared the transaction and that he had already met the Continental Coal team.
“I do not make business out of promoting interests of non-Zimbabweans. My professional interest is in power project development.”
Dr Gata said there was never a sale of any special grant but instead there was a sale of shares.
Minister Kasukuwere said instead of pocketing the US$18 million, the money could be used to further other national causes such as the Youth Empowerment Fund.
He added that those who want to invest in this country should approach the Government instead of people fronting for white interests.
In the Apex Petroleum transaction, it has since emerged that the sale of the concession was being done without the knowledge of the company, which has come out saying that it had no intention to sell its special grants to any foreign or local companies.
One of the directors, Mr Herbert Chigwada, was at the weekend quoted as saying that whatever transpired in the transaction was illegal and distanced the company from the development.
“Apex is an indigenous Zimbabwean company with an obligation to comply with local business regulations and would therefore not sell the special grants against the law,” Mr Chigwada said.
He added that the deal should be stopped and Continental Mining Company and its accomplices should be barred from participating in the mining industry in Zimbabwe.
Mr Chigwada said those behind the deal aimed to loot the country’s mineral resources.
Efforts to get a comment from Mr Mawere were unsuccessful.