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MP clashes with mine management

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ZANU PF Kwekwe Central MP Masango Matambanadzo has clashed with management at Kwekwe Consolidated Gold Mines Pvt Ltd (KCGM) after he ordered them to disclose to him the company’s shareholding structure and the amount of gold produced at the mine.

BLESSED MHLANGA,STAFF REPORTER

In a letter dated November 25, Matambanadzo demanded that the private company disclose to him its shareholding structure, its future plans and the number of mines it operates.

“I write to you in my capacity as MP of Kwekwe . . . in pursuance of the indigenisation, empowerment policy. I would require you to furnish me with the following; the real owner of KCGM, number of tributes which were given out and those not, production records of the tributes and disposal of the gold to Fidelity Printers (receipts).

“I also require to know your future plans about operations at the mine and the number of your part time and permanent staff. I require this information as a matter of urgency before November 27,” reads part of the letter.

However, management at KCGM through their lawyers Mutatu and Partners refused to comply with Matambanadzo’s demands and instead referred him to the Ministry of Mines and Mining Development.

“Before we address specific issues raised therein, there is no legal framework in Zimbabwe for you to poke (your nose) into the affairs of a private company simply because you are an elected Member of Parliament for Kwekwe Central Constituency,” the company’s lawyers said in a letter referenced VM/22/EC.

The lawyers added: “When you say real owners, are you referring to the shareholders? If so, then that information is easily accessible from the Registrar of Companies. Our operations are guided by the Companies Act (Chapter 24:03) and there is nowhere in the Act where returns or reports are made to a Member of Parliament.

“Kindly take note that our client submitted its indigenisation compliance plan with the relevant ministry and, therefore, cannot submit anything to you.”

KCGM asked Matambanadzo to visit the office of the Registrar of Companies if he was interested in knowing the ownership structure of KCGM and further to go to the Ministry of Youth, Indigenisation and Economic Empowerment if he wanted details of the company’s indigenisation plans.

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