Debt-Ridden SMM Mulls Giving Stake to Workers

Taurai Mangudhla

20 April 2011

HEAVILY indebted Shabani Mashava Mines (Pvt) Ltd (SMM) is considering allocating a stake in the company to its workers who have not been paid for more than two years, a government official said.

In an interview with businessdigest on Tuesday, Mines and Mining Development deputy minister, Gift Chimanikire (pictured), said deliberations had been made to pay the workers. SMM has around 4 000 workers at Gaths and Shabani mines.

“SMM is heavily indebted; they owe Zesa more than US$7 million, so we know it is going to be difficult to pay these workers.

“The ministry is also yet to inspect SMM and come up with the necessary audit required, but we are considering allocating shares to the workers who have gone for so long without salaries” Chimanikire said.

Chimanikire shot at Justice minister Patrick Chinamasa’s attempt to technically place all SMM workers on unpaid leave before the company is handed over to government. SMM control was this month handed over to the Mines ministry, which is to operate the group’s mines through government’s Zimbabwe Mining Development Corporation.

“This is a clear attempt to dodge the outstanding salaries. Does it mean these workers were on unpaid leave for the past two years?” he asked.

“The legality of such proposals should be questioned, especially given that Chinamasa neglected the welfare of workers during his tenure,” said Chimanikire in reference to the period during which SMM was under a reconstruction order from the Justice minister.

Chimanikire, who is also MDC-T deputy secretary general, added that although Chinamasa said the legal wrangle with business magnate Mutumwa Mawere over ownership of SMM was over, the ministry needed to see documentary evidence to that effect.

He said: “The fight between Chinamasa and Mawere is over but we still need to see documentary evidence as a prerequisite to the hand over — take over.”

The government took over SMM from Mawere in 2004, on allegations that the businessman had violated exchange control laws.

Chinamasa appointed Arafus Gwaradzimba as the former mining giant’s administrator under the reconstruction order.

Operations at SMM ceased during Gwaradzimba’s tenure.

The newly appointed administrator has a task to complete a reconstruction exercise as well as court investors with deep pockets to get the mines running again.

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