A ROW has erupted over the ownership of Goodenough Gold Mine in Matobo after a foreign investor reportedly took control of the struggling mine in contravention of the country’s indigenisation laws.
SILAS NKALA STAFF REPORTER
One of the Goodenough directors, Henrietta Gugulethu Dube, is suing the company which operates under Chakata Resources (Zimbabwe) Pvt (Ltd) over allegations of inviting the foreign investor to take over the poorly-performing mine and knocking her out.
Dube wants the company placed under provisional judicial management than have it controlled by foreigners, a move she says breaches the Zimbabwe Investment Authority (ZIA) and the Zimbabwe Indigenisation and Economic Empowerment (ZIEE) Acts.
Her lawyer Sindiso Mazibisa of Cheda and Partners on Saturday said the company was served with the lawsuit last Friday.
In an application by the assistant master of the High Court in Bulawayo dated October 11, Dube said she was seeking an order compelling the company to be placed under judicial management as it was in debt and suffers lack of proper management owing to acute differences among the directors.
“Due to lack of trust and co-operation between me and other directors . . . who are litigating over the control of the company, corporate paralysis has set in,” Dube submitted.
“That has led to the business continuing to suffer and creditors threatening the company with compulsory liquidation.”
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She submitted that the flagrant violation of ZIA and ZIEE Acts had resulted in massive looting of gold by foreigners, but ZIA has refused to cancel or suspend the licence and seems to favour the foreign investor to take control of the mine and kick her out.
“Unless the company is placed in the hands of an independent third party, business will fall much to the prejudice of the company’s employees, shareholders and directors,” she submitted.
Dube said she and the foreign investors registered the company which in turn purchased the entire shareholding in PE Steyn (Pvt) Ltd, a company which owns Goodenough Gold Mine in Matobo.
“This mine was purchased under a loan from the foreign investors for $2 100 000 payable over five years,” she said.
“ZIA as obliged by law issued an investment certificate . . .”
She said it had become impossible for the company to be run in a transparent, efficient and profitable manner.
Dube said a dispute arose among the shareholders after the death of a foreign investor representative Alexander Wood in Zimbabwe, leading to litigation over control of the company.
“A deed of settlement was concluded. It was agreed that all shareholding and directorship will be finalised in meetings. After the order by consent, a foreign investor’s agent, one Alecs Mawere, took over the mine, sought to take away my shares, recalled the loan, threatened me and barred me from any activities on the mine.” she said.
Dube said she was being literally denied access to monthly allowances, gold production and financial records.
Dube said the company owes workers in excess of $90 471,09, the Mining Industry Pension Fund $42 563, 00, Messers Dube-Banda, Nzarayapenga and Partners $200 000 in legal fees and Cheda and Partners $25 000.
She submitted that Bongani Ndlovu of Chelmsford Executors and Trust (Pvt) Ltd had agreed to be judicial manager.
“I pray that he be appointed,” she added.
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