Zimpapers Logo

Prosper Ndlovu and Marvelous Moyo Chronicle Reporters
THE National Indigenisation and Economic Empowerment Board (NIEEB) has issued a 21-day ultimatum to Vumbachikwe Mine to comply with the Indigenisation Act.Vumbachikwe Mine, located 16km from Gwanda Town, is the only mining company that has been resisting to cede 10 percent of its shares to the community under the Community Share Ownership Scheme/Trust (CSOS/T).

In a letter directed to the company’s management NIEEB chief executive officer Mr Wilson Gwatiringa gave Vumbachikwe Mine 21 days to submit its final indigenisation plan.

“It was resolved that Duration Gold would dispose 10 percent to NIEEB and revise its offer of $1 million seed capital to the Community Share Ownership Trust. We note that you have not submitted a consolidated and final Indigenisation and Implementation Plan,” read part of the letter dated 25 September 2013.

“In the interest of finalising your compliance process, you are kindly advised to submit the aforesaid revised and final Indigenisation and Implementation Plan (IIP) in favour of indigenous Zimbabweans within 21 days from the date of this letter.”

The letter was directed to the mine director, a Mr E M Smithwick. The Minister of State for Provincial Affairs in Matabeleland South, Cde Abedinico Ncube, on Thursday summoned Vumbachikwe Mine manager, Mr Russen Thomas Chittenden, and handed him the letter during a meeting in Gwanda Town.

The meeting was also attended by some Gwanda CSOT board members among them the board chairman, Chief Mbiko Masuku.
Cde Ncube also revealed that NIEEB had written a letter advising him that no progress had been made with regards to the compliance of Vumbachikwe Mine and thus sought intervention from his office in engaging the mine.

“We are therefore kindly requesting your esteemed office to engage Vumbachikwe Mine to discuss progress regarding their submission of a compliant IIP,” read the letter dated 2 October 2013 which was also read during the meeting.

Cde Ncube said he would ensure that Vumbachikwe Mine complies with the law like other companies.
“All our companies have complied with the Indigenisation Act with the exception of Vumbachikwe Mine for the reasons unknown to us as Government. However, as Government, when we talk of indigenisation, we are very serious.

“Let me say it to you that Vumbachikwe is not a sacred cow. As long as you are in this country, you will have to comply or you lose your mine.

“As the new Minister of State responsible for the province, I am not going to rest until you comply because there is nothing special about Vumbachikwe Mine,” said Cde Ncube.

Mr Chittenden said he was not in a position to respond as he was “just a mine employee” but will take the message to the responsible authorities.

Other contributing mining companies in Matabeleland South have honoured their pledges and the proceeds are already financing numerous developmental projects in Gwanda.

Responding to the issue in an interview in Bulawayo yesterday, the Minister of Youth, Indigenisation and Economic Empowerment, Cde Francis Nhema, said the Government will move swiftly to ensure that all companies comply with the requirements of the Indigenisation Act including releasing outstanding funding under the CSOS/T.

He said he was aware of concerns over delays in the release of CSOS/T funding in Matabeleland North and continued defiance by Vumbachikwe Mine.

“The law is very clear on the issue of compliance with the indigenisation regulations so that every Zimbabwean can participate in the economy. As a Government, we will work to ensure that all players in different sectors of the economy comply,” said Cde Nhema.

“A majority of the companies are willing to work with us and have realised the need to cooperate with the Government. We have cordial discussions with the companies and some have already given us their proposals on how they would want to comply.

“We are also looking at the financial status of the companies bearing in mind that their compliance timeframes are different.”
Cde Nhema said the indigenisation programme was there to unlock meaningful economic development and urged all stakeholders to support it.

He said his ministry would urgently engage the participating companies in all provinces to honour their pledges in order to release money to fund community development projects.

“We are aware of that development and we will look at each case to see if there are any challenges so that we take corrective measures. Those are the issues we want to address urgently.

“I do not think it is an issue of resistance. People are willing and we will work on it with relevant stakeholders,” said Cde Nhema.
To date participating companies in Matabeleland North have not released any funding 12 months after making the pledges when President Mugabe launched the programme in Hwange last year.

Pretoria Portland Cement (PPC), which operates in Gwanda and Umguza District, is the only company that availed $1 million for the Umguza share trust.

The CSOS/T is a countrywide Government initiative under the indigenisation programme aimed at enabling communities to benefit directly from the exploitation of natural resources in their areas. Companies exploiting resources cede a 10 percent stake to communities that then use the proceeds from their shares to fund development projects.