Zimplats accused of luring chiefs to withdraw community share ownership trust

Platinum giant, Zimplats is accused of luring chiefs of Mhondoro Ngezi, Chegutu and Zvimba to agree to the company’s intention to amendment the deed of trust so that it will no longer be required to dispose of the 10% of its shares to communities.

Express Mail Zim understands that the trustees of Zimplats Mhondoro Ngezi Chegutu Zvimba Community Trust (ZMNCZ) are in favour of the amendment of the deed of trust. But the move is allegedly set to be orchestrated without the consent of the communities who are supposed to be beneficiaries according to the provisions of the indigenisation laws.

In the latest communique seen by this publication, Ward 28 Chegutu Rural District Council councillor Tatenda Gwinji raised concerns that Zimplats had been luring chiefs and the Ministry of Industry and Commerce to agree to the amendment of the deed of trust.

“Zimplats is luring the Chiefs and the Ministry of Industry and Commerce, to agree to a crippling amendment going to the root of the very existence of the community trust, with vague promises to fund alternative enterprises for the community. Such promises only ring empty considering that since 2021 Zimplats has failed to present to the board of the community trust its plan to fund the trust’s investment and development objectives,” he said.

“Meanwhile the trust is being setup for double jeopardy, if it falls to the enticement to amend its deed and do away with its legal claim to 10% shares in Zimplats.

“The Zimplats Mhondoro Ngezi Chegutu Zvimba Trust has proved its ability to make sound investment decision with the initial seed capital donated to it by Zimplats ten years ago, having invested an estimated US$1,4 million to secure 33% in a poultry business that has grown to secure a significant share in Zimbabwe’s poultry market and in the process growing the community’s initial investment at least twofold.

There is a lack of confidence within the community in Zimplats’ sincerity to support investments and enterprise development by the community trust. Firstly, empowering the Trust with its 10% share in Zimplats would enable the Trust to use such a stake to pursue more investment and enterprise that will grow the local economy.”

Instead, Gwinji said the community had expressed concern over Zimplats pursuing its own private investments, while made in the name of the community.

“In August 2021 Zimplats launched a $15 million cattle ranching project in Mhondoro, which was more private sector driven with no community ownership or direct participation in the venture. Sometime in 2017 Zimplats committed the community trust to investing in citrus ventures only to leave the project hanging,” he said.

Efforts to contact Zimplats Holdings head-corporate affairs Sibusisiwe Chindove were fruitless as she could not respond to messages and calls.