UPDATE ON THE PARLIAMENTARY PORTFOLIO COMMITTEE ON YOUTH, INDIGENIZATION AND ECONOMIC EMPOWERMENT MEETING – 7 MAY 2015

Matter: Oral evidence from the Permanent Secretary for Mines and Mining Development and the Permanent Secretary for Youth, Indigenisation and Economic Empowerment on progress made on the follow-up to the pledges made by mining companies to Marange- Zimunya CSOT.

The Permanent Secretaries did not attend the meeting but they sent in representatives at Directorate level.  These included;

Mr Hawadi- Ministry of Mines

Mr Tizoro- Acting GM- Zimbabwe Mining Development Corporation

Mr Masanga- Ministry of Youth Indigenisation and Economic Empowerment

Mr Mashonganyika- Ministry of Youth Indigenisation and Economic Empowerment

Mr Rangu Nyamurundira- National Indigenisation and Economic Empowerment Board

Mr Ngwarati- Ministry of Youth Indigenisation and Economic Empowerment

BACKGROUND

Five mining companies operating in Marange are alleged to have pledged to donate US$50 million into the Marange Zimunya Community Share Ownership Trust with each company in-putting US$10 million. The Trust was launched on 26 July 2012 but the ‘pledges’ have not been fulfilled and some of the companies in Marange have since stated that they never agreed to the pledges.

President Mugabe launching the Marange Zimunya Trust (photo credit: ZBC)

President Mugabe launching the Marange Zimunya Trust (photo credit: ZBC)

PROCEEDINGS

The Chairperson of the Committee indicated that the Committee wrote to the Ministry of Mines and Mining Development and the Ministry of Youth Indigenisation and economic Empowerment seeking information on the progress that has been made on the ensuring that mining companies that made pledges to the Marange Zimunya Community Trust had been honoured. The Chair also noted that the letters to both Ministries had requested evidence of correspondence between the Ministries and with the mining companies involved with respect to the issue of the Marange Zimunya Community Trust.

Outcome of the Committee Meeting and Oral Evidence from the Ministries

  1. There is no official communication that shows that the companies in Marange made pledges to donate to the CSOTS
  2. The Ministry of Youth Indigenisation and Economic Empowerment states that the pledges were verbal
  3. There is however no evidence (audio/meeting minutes) that shows that the companies made the pledges
  4. There Ministry of Youth Indigenisation and Economic Empowerment argues that the companies committed to the pledges and this is evidenced by the fact that it is the companies that produced the dummy cheques for presentation and not the Ministry
  5. The Ministry of Youth Indigenisation and Economic Empowerment has since written to the mining companies (March 2015) to get their official commitment with respect to the pledges and their plans to make good on the pledges.
  6. Out of all the mining companies, only Jinan has written back. Jinan’s letter back to the Ministry of Youth Indigenisation and Economic Empowerment was just an acknowledgement of receipt of the letter from the Ministry and does not necessarily commit to the ‘ pledges’
  7. ZMDC was not involved in the issue of pledges to the CSOT and was only invited to the launch
  8. There is no evidence of correspondence between the Ministry of Mines and Mining Development and the Ministry of Youth, Indigenisation and Economic Empowerment with respect to the Marange Zimunya Community Share Ownership Trust
  9. ZMDC met with the mining companies on 20 June 2013 and directed the mining companies to make contributions to the Trust (each contributing US$200 000 immediately subsequent to this meeting of June 2013)
  10. Marange Resources remitted US$250 000 and Mbada Diamonds remitted US$200 000 to the CSOT’s bank account
  11. Given the production challenges in Marange, the Ministry of Mines and Mining Development’s position is that these pledges be renegotiated down with a view to payment being spread over a period of time

Further Reading:

President Launches Marange Zimunya Community Trust 

Scam Fears in Community Trusts

Marange Community Share Ownership Trust Under Fire 

Community Share Ownership Trusts in Zimbabwe’s Mining Sector: The Case of Mhondoro-Ngezi 

REPORT BY: PUBLISH WHAT YOU PAY ZIMBABWE

Publish What You Pay Zimbabwe is a coalition of civil society and community based organisations united in their call for a more open and transparent mining sector in Zimbabwe.

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