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By
Violet Gonda
A BRITISH
judge on Thursday threw out a bid by the Zimbabwe government to take-over
Mutumwa Mawere's companies in a case set to gobble close to £1,5
million in legal fees and costs.
The judge slammed the court action brought by the Zimbabwe government in an attempt to transfer control of Mawere's UK-registered African Resources Limited to a government nominee company, AMG Global Nominees Limited.
The judge said the action amounted to “grotesque extravagance”, with both parties hiring top London law firms to represent them. Several associates of Zimbabwe's Reserve Bank governor Gideon Gono frequently traveled between Zimbabwe and London for court hearings.
The Zimbabwe government needed the consent of the English courts to complete the takeover of Mawere's company after realising it could not do so without the court order.
Mawere, whose companies were seized by a presidential decree, said the judge was able to see that AMG was a government front trying to acquire his assets and said it was both illegal and unjust. He said this ruling means the takeover of his assets cannot be completed by the government.
Critics have said the Reconstruction Order which was passed into an Act by parliament allows the government to take over any private company on spurious grounds of "state indebtedness" and insolvency.
Mawere said: “If the English court can recognise an injustice, and they were the former colonial power, what does that mean for you, after 26 years of independence? How far have we travelled. I thought independence was to free us from this kind of oppression but 26 years later we are being exposed to this kind of tyranny with impunity.”
The South Africa-based businessman has in the past criticised the fact that the Zimbabwean government, which always attacks the British, is being defended and represented by British lawyers in the UK courts.
It’s reported the cash strapped government spent an estimated £1,3 million to pay top class UK lawyers. Mawere also said, just for travel to the court hearing, the government spent a whopping £150 000 on first class airfares and 5 star accommodation for it’s Zimbabwean representatives.
These included government appointed administrator Afaras Gwaradzimba and commercial lawyer and government purse man Edwin Manikai. Reserve Bank Governor Gideon Gono sent four representatives.
Mawere was accused of externalising foreign currency and was specified under the Prevention of Corruption Act, in 2004. His mines, together with companies in finance, insurance and agriculture were seized by presidential decree.
He lost his flagship business, Shabanie Mashaba Mines (SMM Holdings), which he had bought for US$60m from British company Turner & Newell in 1996, to the state.
Following the expropriation of SMM Holdings by the government, an administrator Afaras Gwaradzimba, was appointed to replace the company’s board of directors and assume control of the company. Gwaradzimba is reported to have accused Mutumwa Mawere of asset-stripping the group and starving SMM of foreign currency, leading to its collapse last year.
Mawere was arrested in SA in 2004, but freed after Zimbabwe failed in its bid to get him extradited.
Just last week,
Mawere was in the USA as part of his campaign to expose how his business
empire has been systematically destroyed and sold off by the Zimbabwean
government. He told representatives from the International Monetary
Fund that the government raided his companies to pay off the IMF loan.
Zimbabwe recently surprised analysts by paying off the outstanding IMF
debt - SW Radio Africa
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