Home » Governance » Community Share Scheme Failing, Says Minister

YOUTH, Indigenisation and Economic Empowerment Minister Chris Mushohwe says the government’s Community Share Ownership Trust Scheme (CSOTS) has failed.

This comes after a majority of companies that pledged to deposit some money into the trust have failed to do so, two years after it was launched in 2012.

President Mugabe toured the country’s 10 provinces in 2012 launching the scheme in which mining companies were made to pledge 10 percent of their investment towards community development.

Big mining firms such as Unki, Mimosa and diamond explorers in Manicaland pledged but Minister Mushohwe last week said none had dared honour.

“It is not in Matabeleland North only where no company has honoured its pledge even in Manicaland where I come from the diamond mines haven’t deposited anything.

I am summoning them one by one countrywide to try and find out why they haven’t paid. I think there is lack of clarity of policy because some say they never pledged.

“There was no policy and we are therefore now formulating a policy to make sure there is a statutory provision to compel companies to honour their pledges and look after the communities they are domiciled in.”

The Minister said the policy document would be presented to Cabinet for approval once it is ready for adoption.

He said the new policy framework would also reconsider the size of each mining firm in relation to the 10 percent they are supposed to contribute, as small companies couldn’t be made to contribute in the same manner as bigger firms.

“My view is that we should consider each firm’s investment because some companies are big and some small. Contribution cannot be universal where smaller companies can also contribute $10 million, we surely must look at their investment,” he said.

Source : New Zimbabwe