Chairperson of Chegutu Rural District Council (RDC) has dragged the Zimbabwe Platinum Mines (Zimplats) Private Limited to court demanding 10% share capital in the mining company.
In his court application, Chegutu RDC chairperson Tatenda Gwinji said the company violated the Zimplats Mhondoro-Ngezi Chegutu/Zvimba share ownership trust (CSOT) agreement signed with the community in 2011.
In 2010, government established the CSOTs as vehicles to develop and empower communities in which mineral resources are mined.
The CSOTs fell under the government’s controversial indigenisation policy.
In 2011, the Zimplats Mhondoro-Ngezi, Chegutu/Zvimba CSOT was formed after the community signed an agreement with Zimplats.
Under section 3 of the agreement, Zimplats was supposed to allot 10% ordinary shares to the trust.
In his application, Gwinji said Zimplats had reneged on the agreement.
“Despite demand by the plaintiff and other community members, the second defendant has either failed and or neglected to allot to the trust ordinary shares in the share capital of second defendant constituting 10% of the issued share capital of second defendant as provided for in Clause 3.3,” Gwinji submitted.
Gwinji cited Zimplats Mhondoro-Ngezi, Chegutu/Zvimba CSOT, Zimplats, Mines minister Winston Chitando, founding trustees of CSOT Sibusisiwe Revai Chindove and Godfrey Havatitye Sigobodhla as first to fifth respondents, respectively in his application dated November 14.
“The second defendant’s conduct amounts to an infringement of the plaintiff’s right to development in terms of the Constitution of Zimbabwe, 2013 and regional and international human rights laws.
“Likewise and despite demand the second defendant has either failed and or neglected to execute the subscription agreement relating to the community shares as provided for by Clause 3.3,” Gwinji submitted.
“The second defendant has not paid the first defendant at least US$100 000 000 in dividends over the past decade. Given the above the plaintiff seeks a declaration of the first defendant’s entitlement to the allotment of ordinary shares in the share capital of second defendant constituting 10% of the issued share capital of second defendant as provided for by Clause 3.3.”
He added: “Likewise, and given the above, the plaintiff seeks an order compelling the second defendant to execute the subscription agreement relating to the community shares as provided for by Clause 3.3 above: Plaintiff also seeks to be reimbursed the costs, on the scale of attorney and own client of this suit because he did not need to be put out of pocket for the vindication of rights so clear.”