GOODENOUGH Gold Mine in Matobo has been placed under provisional judicial management after a row erupted over the management of the mine with some of its directors citing gross abuse of funds.
GAMMA MUADARIKIRI OWN CORRESPONDENT
According to a high court provisional order dated 7 November 2013 seen by the Southern Eye Business, the mine trading as Chakata Resources Zimbabwe (Pvt) Ltd t/a Good Enough Mine was placed under judicial management following an application by one of its directors Henrietta Gugulethu Dube.
The order grants the company an interim relief on all court actions and the execution of all writs, summons and other court processes.
“While the provisional judicial management order is in force, all actions, executions, of writs summons and other proceeding against the applicant shall not be preceded without leave of the honourable court,” part of the order reads.
“Any goods attached or removed shall forthwith be released from such attachment and placed in the custody of the provisional judiciary manager,” the order adds.
According to the court order all existing directors of the company have been divested of their power and Bongani Moyo has been appointed judicial manager.
The company has for long been caught in legal wrangle after one of its directors Dube had taken her co-directors to court over allegations of inviting foreign investors to take over the poorly-performing mine and knocking her out.
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Dube has been pushing for the company to be placed under provisional judicial management rather than have it controlled by foreigners, a move she said was in breach of the Zimbabwe Investment Authority (ZIA) and the Zimbabwe Indigenisation and Economic Empowerment (ZIEE) Acts.
In an application to 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 suffered 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 said in her application.
“That has led to the business continuing to suffer and creditors threatening the company with compulsory liquidation.”
She said the flagrant violation of ZIA and ZIEE Acts had resulted in massive looting of gold by foreigners, but ZIA had refused to cancel or suspend the licence and seemed 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 added in her application.
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 adding that the mine was purchased under a loan from the foreign investors for $2 100 000 payable over five years.
She 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.
According to Dube’s application, 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.
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