Home » Business » Zimplats Rapped Over Indigenisation

Members of Parliament yesterday rapped Zimplats over the pace at which it is implementing the indigenisation policy and called for both Government and the mining firm to expedite the process. A parliamentary portfolio committee on Youth Development Indigenisation and Economic Empowerment, said there was need for Zimplats to conclude the 10 percent shareholding that the community share ownership Trust was entitled to while it pursued other discussions to fulfil the 51-49 percent indigenisation threshold.

This was said by acting committee chairperson and Marondera East MP, Cde Jeremiah Chiwetu (Zanu-PF), during a tour of the Zimplats plant in Ngezi by the committee.

“The issue that you still need to work on, which is a bone of contention is that of indigenisation. Yes of course, you are doing something that you have explained but more needs to be done,” said Cde Chiwetu during a briefing.

In an interview during the tour Cde Chiwetu expressed displeasure, saying the mining firm should do more than what it was doing to comply with the indigenisation laws.

“A lot still has to be done about indigenisation since there is nothing on paper yet. Government should do something, particularly the ministry responsible, we expect it to work on it and conclude the discussions that we were told were ongoing,” said Cde Chiwetu. He said while it was commendable that Zimplats had paid $10 million seed money for the Trust, there was need to ensure that the community legally assumed the 10 percent shareholding that it was entitled to in terms of the law.

“The $10 million will eventually get finished hence there is need for the community to have 10 percent of the equity to enable them to get 10 percent dividend,” he said.

Cde Chiwetu said while the committee was satisfied with the explanation proffered by the mining firm on how they intended to achieve the 51-49 percent, there was nothing to celebrate because nothing had been concretised by way of writing.

Zimplats spokesperson Ms Busi Chindove had told the legislators that discussions were still underway with the responsible Government arm on how the firm would comply with the law.

She said there was 10 percent for the Trust and the same percent for employees, while the balance was still being negotiated.

“The discussions with the Government are positive. They are now at an aanced stage,” said Ms Chindove.

Meanwhile, the committee is expected to tour Chisumbanje ethanol plant today.

Source : The Herald

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