Call to probe Gwaradzimba
The Department of Anti-Corruption and Anti-Monopolies (DAA) says SMM Holdings administrator, Afaras Gwaradzimba, must be investigated for possible misrepresentation of facts, conflict of interest and siphoning of state resources under the guise of reconstruction.
According to the findings of an interim report dated November 7-9, 2010, Gwaradzimba should also be held responsible for “negligence and maladministration” as his appointment as administrator was “inappropriate”.
The report noted that the collapse of the SMM had resulted in moral decadence, rising levels of prostitution and adultery in the small mining towns of Mashava and Zvishavane.
“Gwaradzimba must be investigated for possible misrepresentation of facts and for possible conflict of interest and possible siphoning of state resources in the guise of reconstructing SMM, a task he has failed to complete in six years,” reads part of the report.
“The administrator should be held responsible for negligence and maladministration of SMM Holdings, the effects of which are causing civil unrest in the form of demonstrations, moral decadence and rising levels of prostitution as well as environmental degradation due to increasing levels of illegal panning by workers going for long periods without pay.”
DAA said Gwaradzimba’s appointment as administrator of SMM was inappropriate as evidence pointed to the fact that he was the auditor of UKI, which is a subsidiary of SMM, hence he was an insider in relation to SMM.
“Appointing him subjected him to corruption in the form of conflict of interest,” said the commission.
It said the passing of the reconstruction order was influenced by the government guarantee through the Mineral Marketing Corporation of Zimbabwe but it was not clear under what conditions the guarantee was offered to SMM Holdings.
“Gwaradzimba claims that government started investigating SMM after it got concerned with the frequency and extent to which SMM was asking for government assistance,” reads part of the findings.
“This does not appear to be true because at that time there was the Private Sector Facility Programme by government run by the Reserve Bank of Zimbabwe. There was no established review mechanism to assess the performance of the company and the administrator.”
The anti-corruption department said Gwaradzimba did not in any way achieve the expected results given the six years that he had so far been in charge, adding that instead of bringing the situation to normalcy, things worsened in 2004 soon after his appointment.
“The administrator did not concentrate on his core business as defined in the Act that resulted in his appointment. Instead of concentrating on rebuilding the company he concentrated on ownership issue as witnessed by his numerous meetings with T&N, the original owners of SMM,” the commission said in its report.
Workers who were interviewed by the commission said before the coming in of the administrator there were no salary arrears and all the activities were running smoothly. With the introduction of the reconstruction law things became worse.
“Reconstruction was effected when the company was at its optimum production level (2003 output was the peak). Thereafter production was not maintained at optimal levels and there was no ploughing back of proceeds and the situation continuously declined,” reads the report.
Workers’ sentiments are that the government is letting then down and is responsible for their ever-deteriorating welfare.
Minister of Justice and Legal Affairs, Patrick Chinamasa raised objections to the investigation by the department and did not take kindly to some of the questions asked by the team.
It is believed the commission asked questions relating to the ownership of SMM, the administrator’s appointment and past relationships with SMM among other issues.
“I cannot personally see the relevance of any of the issues you appear to have alleged/enquired on, vis-à-vis the objectives of reconstructing SMM,” said Chinamasa in a letter addressed to Jacob Gonese the principal director in the department.
“My conclusion, from what has been reported to me, is that the DAA is unnecessarily interfering with the SMM reconstruction process, is playing the Mawere (Mutumwa) politics and by touching on issues of externalisation and SMM’s borrowings from the State, the DAA is interfering with matters before the courts, which is prejudicial.
“I cannot see why and how the DAA could still be investigating Mawere after its conclusions that have led to Mr Mawere’s de-specification and cancellation of his warrant of arrest.
“To say the least, this is totally unacceptable behaviour, particularly coming from a senior government official,” wrote Chinamasa.
The report noted that the collapse of the SMM had resulted in moral decadence, rising levels of prostitution and adultery in the small mining towns of Mashava and Zvishavane.
“Gwaradzimba must be investigated for possible misrepresentation of facts and for possible conflict of interest and possible siphoning of state resources in the guise of reconstructing SMM, a task he has failed to complete in six years,” reads part of the report.
“The administrator should be held responsible for negligence and maladministration of SMM Holdings, the effects of which are causing civil unrest in the form of demonstrations, moral decadence and rising levels of prostitution as well as environmental degradation due to increasing levels of illegal panning by workers going for long periods without pay.”
DAA said Gwaradzimba’s appointment as administrator of SMM was inappropriate as evidence pointed to the fact that he was the auditor of UKI, which is a subsidiary of SMM, hence he was an insider in relation to SMM.
“Appointing him subjected him to corruption in the form of conflict of interest,” said the commission.
It said the passing of the reconstruction order was influenced by the government guarantee through the Mineral Marketing Corporation of Zimbabwe but it was not clear under what conditions the guarantee was offered to SMM Holdings.
“Gwaradzimba claims that government started investigating SMM after it got concerned with the frequency and extent to which SMM was asking for government assistance,” reads part of the findings.
“This does not appear to be true because at that time there was the Private Sector Facility Programme by government run by the Reserve Bank of Zimbabwe. There was no established review mechanism to assess the performance of the company and the administrator.”
The anti-corruption department said Gwaradzimba did not in any way achieve the expected results given the six years that he had so far been in charge, adding that instead of bringing the situation to normalcy, things worsened in 2004 soon after his appointment.
“The administrator did not concentrate on his core business as defined in the Act that resulted in his appointment. Instead of concentrating on rebuilding the company he concentrated on ownership issue as witnessed by his numerous meetings with T&N, the original owners of SMM,” the commission said in its report.
Workers who were interviewed by the commission said before the coming in of the administrator there were no salary arrears and all the activities were running smoothly. With the introduction of the reconstruction law things became worse.
“Reconstruction was effected when the company was at its optimum production level (2003 output was the peak). Thereafter production was not maintained at optimal levels and there was no ploughing back of proceeds and the situation continuously declined,” reads the report.
Workers’ sentiments are that the government is letting then down and is responsible for their ever-deteriorating welfare.
Minister of Justice and Legal Affairs, Patrick Chinamasa raised objections to the investigation by the department and did not take kindly to some of the questions asked by the team.
It is believed the commission asked questions relating to the ownership of SMM, the administrator’s appointment and past relationships with SMM among other issues.
“I cannot personally see the relevance of any of the issues you appear to have alleged/enquired on, vis-à-vis the objectives of reconstructing SMM,” said Chinamasa in a letter addressed to Jacob Gonese the principal director in the department.
“My conclusion, from what has been reported to me, is that the DAA is unnecessarily interfering with the SMM reconstruction process, is playing the Mawere (Mutumwa) politics and by touching on issues of externalisation and SMM’s borrowings from the State, the DAA is interfering with matters before the courts, which is prejudicial.
“I cannot see why and how the DAA could still be investigating Mawere after its conclusions that have led to Mr Mawere’s de-specification and cancellation of his warrant of arrest.
“To say the least, this is totally unacceptable behaviour, particularly coming from a senior government official,” wrote Chinamasa.
