Zimasco (Pvt) Ltd has gone to court to block what it says are attempts by a Kwekwe-based businessman Shepard Tundiya, through his company Avim Investments, to seize control of the mining company.
This follows a recent high court order that Avim secured that may see the takeover of one of the country’s largest mining and chromite ore smelting companies. The order, issued by High Court judge Joel Mambara, was allegedly directed at Sinosteel Zimasco (Pvt) Ltd, which the company registry shows is separate from Zimasco (Pvt) Ltd.
Tundiya, in collaboration with Wilson Manase and businessman Denny Marandure, allegedly attempted on March 17, to gain control of Zimasco’s bank accounts at Ecobank by instructing the bank to alter the account signatories in their favour. Ecobank, however, declined to comply, asserting that the court order did not pertain to Zimasco (Pvt) Ltd. Furthermore, the order had not been served on Zimasco Pvt Ltd, but was instead presented directly to the bank.
Following the failed attempt at the bank, the individuals visited Zimasco (Pvt) Ltd’s head office, claiming authority to take over the company’s management under the purported court order. Zimasco Pvt Ltd management contends the order was against Sinosteel Zimasco (Pvt) Ltd, not Zimasco (Pvt) Ltd and rejected their actions.
Avim Investments, with the assistance of Kwande Legal Practitioners, later applied to “correct” the court order, to show that Sinosteel Zimasco (Pvt) Ltd was operating as Zimasco (Pvt) Ltd. This application was heard by Justice Mambara, who granted the order within just three hours—without serving it on Zimasco (Pvt) Ltd, an interested party, company lawyers said. The company said it was never notified, even though it was an affected party.
Neither Zimasco nor Ecobank were served.
Armed with the modified court order, Manase and his associates renewed their attempt to gain control of Zimasco’s accounts. Ecobank again refused to comply, maintaining that the corporate rescue order applied to Sinosteel Zimasco (Pvt) Ltd, and not Zimasco (Pvt).
In response, Zimasco (Pvt) Ltd has urgently filed a High Court application to block the court order.
The company has lodged formal complaints with the Judicial Service Commission regarding Justice Mambara’s handling of the matter and with the Law Society of Zimbabwe against Manase & Manase and Kwande Legal Practitioners for alleged unethical conduct.
Sources say the Chinese embassy in Harare has expressed strong concern over the alleged attempt to seize control of Zimasco (Pvt) Ltd, a key Chinese investment. The Embassy wants the Government of Zimbabwe to protect the investment, under the Bilateral Investment Protection and Promotion Agreement between China and Zimbabwe, a source said.
