Business / Economy
Battle over Zim gems intensifies
14 Dec 2010 at 17:56hrs | Views
A fight has erupted between lawyers for the state-owned Zimbabwe Mining Development Corporation (ZMDC) and Core Mining and Minerals amid accusations of conflict of interest and insinuations of corruption in the battle to control the country's controversial diamond proceeds.
ZMDC lawyer Advocate Farai Mutamangira has come under fire from Core Mining's attorneys, Chikumbirike & Associates, who want him removed from a case involving an application by Core Mining against the state-run company on contract disputes and clashes on contested sale of diamonds.
Mutamangira, who was appointed by ZMDC chairman Goodwills Masimirembwa amid claims of conflict of interest on his part, has become a controversial figure in the diamond court cases after he was paid a staggering $950 000 in legal fees.
Mutamangira has been working closely with Minister of Mines Obert Mpofu and ZDMC, apparently without the Attorney General's clearance, raising serious questions about his role. The Attorney General is supposed to represent the minister and ZMDC. Chikumbirike & Associates want proof that Mutamangira was authorised by the Attorney General to represent Mpofu.
A letter dated August 30, written by Mpofu, confirms that the minister authorised some of the dubious payments to Mutamangira. "Kindly find enclosed the statement of legal fees. Immediately settle the same without delay," Mpofu writes to chairmen of the state-owned companies involved in diamond mining.
Mutamangira & Associates were then paid $600 000 by ZMDC. An affidavit by former ZMDC chief executive Dominic Mubaiwa, challenging his recent dismissal at the Labour Court, says Mutamangira's company was paid $950 000.
The situation has been worsened by another fierce court battle raging over the sale of diamonds and sharing of proceedings between Mpofu and Core Mining chairman Lovemore Kurotwi following the seizure of gems worth more than $80-million. Kurotwi was recently arrested with five ZMDC officials over corruption charges.
Due to the Chiadzwa imbroglio, there are many current court cases over diamond disputes.
Core Mining, which last year entered into a joint venture with ZMDC's subsidiary, Marange Resources, to form Canadile, recently made a court application demanding that its operations at the Chiadzwa diamond fields be restored.
The contract between ZMDC and Core Mining was recently cancelled over allegations of corruption and smuggling of diamonds worth more than $100-million by different mining executives. ZMDC and Core Mining officials were recently arrested and detained over the issue. They are currently out on bail.
Core Mining's lawyers, Chikumbirike & Associates, last week applied for an order to reinstate Canadile in its mining operations in Chiadzwa.
ZMDC lawyer Advocate Farai Mutamangira has come under fire from Core Mining's attorneys, Chikumbirike & Associates, who want him removed from a case involving an application by Core Mining against the state-run company on contract disputes and clashes on contested sale of diamonds.
Mutamangira, who was appointed by ZMDC chairman Goodwills Masimirembwa amid claims of conflict of interest on his part, has become a controversial figure in the diamond court cases after he was paid a staggering $950 000 in legal fees.
Mutamangira has been working closely with Minister of Mines Obert Mpofu and ZDMC, apparently without the Attorney General's clearance, raising serious questions about his role. The Attorney General is supposed to represent the minister and ZMDC. Chikumbirike & Associates want proof that Mutamangira was authorised by the Attorney General to represent Mpofu.
A letter dated August 30, written by Mpofu, confirms that the minister authorised some of the dubious payments to Mutamangira. "Kindly find enclosed the statement of legal fees. Immediately settle the same without delay," Mpofu writes to chairmen of the state-owned companies involved in diamond mining.
Mutamangira & Associates were then paid $600 000 by ZMDC. An affidavit by former ZMDC chief executive Dominic Mubaiwa, challenging his recent dismissal at the Labour Court, says Mutamangira's company was paid $950 000.
The situation has been worsened by another fierce court battle raging over the sale of diamonds and sharing of proceedings between Mpofu and Core Mining chairman Lovemore Kurotwi following the seizure of gems worth more than $80-million. Kurotwi was recently arrested with five ZMDC officials over corruption charges.
Due to the Chiadzwa imbroglio, there are many current court cases over diamond disputes.
Core Mining, which last year entered into a joint venture with ZMDC's subsidiary, Marange Resources, to form Canadile, recently made a court application demanding that its operations at the Chiadzwa diamond fields be restored.
The contract between ZMDC and Core Mining was recently cancelled over allegations of corruption and smuggling of diamonds worth more than $100-million by different mining executives. ZMDC and Core Mining officials were recently arrested and detained over the issue. They are currently out on bail.
Core Mining's lawyers, Chikumbirike & Associates, last week applied for an order to reinstate Canadile in its mining operations in Chiadzwa.
Source - The times
