Business / Companies
Mugabe's nephew raises eyebrows as he tries to take over gasification project
22 Jun 2013 at 08:02hrs | Views
PRESIDENT Robert Mugabe's nephew and businessman Leo Mugabe's attempt to take over a multi-million dollar gasification project has raised a stink, following allegations by the Chinese firm's major shareholder that Hwange Colliery Company (HCC) was interfering in the firm's day-to-day operations.
Hwange Coal Gasification Company (HCGC) yesterday described as illegal Mugabe's appointment to the company's board.
The drama unfolded just over two months ago after Chinese businessman Su Longim filed an urgent High Court application seeking an order to block a planned annual general meeting.
In his application, Longim, whose company Taiyuan Sanxin Economic and Trade Company holds 75% shareholding in HCGC, said the AGM was organised without his consent.
HCGC, through its lawyers Venturas and Samukange legal practitioners, yesterday said the April 24 meeting was of no consequence and was conducted contrary to law.
"Take notice that Mr Leo Mugabe is legally incapacitated to represent or to be involved in any way with the business of Hwange Coal Gasification Company (Private) Limited. There is an extant court order barring and interdicting him to interface in any way with the company under HC3160/13," the company said in a statement.
This followed reports by HCC claiming that there had been "externalisation of funds from the coal gasification unit it jointly owns with a Chinese company, Taiyuan Sanxin Economic and Trade Company. HCGC was formed through a built-operate-transfer arrangement in which HCC owns 25%.
HCC company secretary Thembelani Ncube was on Tuesday quoted as saying: "Forensic auditors appointed to carry out an investigation into the operations of Hwange Coal Gasification Company to date have established that there was mismanagement and there have been massive externalisation of funds."
But HCGC said: "The recent statement on the 14th of June 2013 at the instance of Hwange Coal Gasification Company is not authorised by the board of directors and is, therefore, null and void.
"Ncube is not the company secretary for HCGC and cannot therefore insert anything with legal force on behalf of the company."
Ncube could not be reached for comment as he was said to be engaged in a meeting.
Hwange Coal Gasification Company (HCGC) yesterday described as illegal Mugabe's appointment to the company's board.
The drama unfolded just over two months ago after Chinese businessman Su Longim filed an urgent High Court application seeking an order to block a planned annual general meeting.
In his application, Longim, whose company Taiyuan Sanxin Economic and Trade Company holds 75% shareholding in HCGC, said the AGM was organised without his consent.
HCGC, through its lawyers Venturas and Samukange legal practitioners, yesterday said the April 24 meeting was of no consequence and was conducted contrary to law.
This followed reports by HCC claiming that there had been "externalisation of funds from the coal gasification unit it jointly owns with a Chinese company, Taiyuan Sanxin Economic and Trade Company. HCGC was formed through a built-operate-transfer arrangement in which HCC owns 25%.
HCC company secretary Thembelani Ncube was on Tuesday quoted as saying: "Forensic auditors appointed to carry out an investigation into the operations of Hwange Coal Gasification Company to date have established that there was mismanagement and there have been massive externalisation of funds."
But HCGC said: "The recent statement on the 14th of June 2013 at the instance of Hwange Coal Gasification Company is not authorised by the board of directors and is, therefore, null and void.
"Ncube is not the company secretary for HCGC and cannot therefore insert anything with legal force on behalf of the company."
Ncube could not be reached for comment as he was said to be engaged in a meeting.
Source - NewsDay
