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Govt’s Hwange Colliery Reconstruction illegal, says company scheme chair

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By Alois Vinga


HWANGE Colliery Company Limited (HCCL) scheme chair, Andy Lawson says government’s recent move to place the coal mining giant under Reconstruction was a violation of the law as key stakeholders were never consulted over.

This week government placed the colliery company under Reconstruction which is provided for under the Reconstruction Act.

The unpopular measure allows government to temporarily takeover the running of a company’s operations if convinced there may be risk of closure due to bad management.

Bekithemba Moyo, the co-founder and director of DBF Capital was appointed the new administrator of the mine during its Reconstruction period while Mutsa Mollie Jean Remba, who is the current managing director of Dube, Manikai and Hwacha was appointed the assistant administrator with Munashe Shava who is the chief operating officer and project leader at the Great Dyke Investments.

However, giving oral evidence before parliament’s Mines and Energy committee on Tuesday, Lawson expressed shock over government’s directive which he described as illegal.

“Entities that qualify for such a placement must be state enterprises and not parastatals,” Lawson said.

“While government is the major shareholder, there are other stakeholders like the public who were not consulted. In my opinion, such a move is illegal,” he said.

Lawson said even as the HCCL Scheme chair, he was never consulted about the arrangement.

Meanwhile, Zimbabwe Congress of Trade Unions national organiser, Michael Kandukutu says the Reconstruction Act is illegal because it was unilaterally enacted.

“The legal piece was crafted and incepted by one individual, Patrick Chinamasa during his tenure as Finance Minister which renders it illegal because it did not go through the mill.

“As a result, the colliery’s workers will be downing tools as they believe that the recent placement has been necessitated by an illegal legislative Act and also that the recent directive has worsened their situation,” he said.