News / National
Share ownership trust funds abused: Mavima
27 Mar 2019 at 07:09hrs | Views
MIDLANDS Provincial Affairs minister Larry Mavima has castigated community share ownership trusts (CSOT) in the province over "improper" use of funds, which he said were not benefiting communities.
Speaking in Gweru at a recent meeting with three CSOTs in the province, Mavima said funds that come from mining companies should be channelled towards community income-generating projects.
"There is need for CSOTs in the province to use funds they get from mines on income-generating projects," he said.
"A time will come when those mines cease operations and nothing will be coming into the coffers of CSOTs. There is, therefore, need to invest the money in sustainable community projects."
He took a swipe at Mberengwa CSOT for using the $900 000 they received to construct an office block.
Mavima said he will call meetings with trustees of CSOTs to discuss ways of investing the money.
"I am not happy that Mberengwa decided to build a fancy office block after receiving $900 000 under the trust," he said.
"Besides the fact that the block is not complete up to now, it should be clearly stated that such funds are not for the luxury of lavish offices, but to benefit communities."
The meeting was attended by representatives of Mberengwa, Shurugwi and Zvishavane CSOTs.
In 2014, then Indigenisation and Economic Empowerment minister Francis Nhema said 61 CSOTs in the country were going to be probed for abuse of funds.
The results of the audit were, however, never made public.
Speaking in Gweru at a recent meeting with three CSOTs in the province, Mavima said funds that come from mining companies should be channelled towards community income-generating projects.
"There is need for CSOTs in the province to use funds they get from mines on income-generating projects," he said.
"A time will come when those mines cease operations and nothing will be coming into the coffers of CSOTs. There is, therefore, need to invest the money in sustainable community projects."
He took a swipe at Mberengwa CSOT for using the $900 000 they received to construct an office block.
Mavima said he will call meetings with trustees of CSOTs to discuss ways of investing the money.
"I am not happy that Mberengwa decided to build a fancy office block after receiving $900 000 under the trust," he said.
"Besides the fact that the block is not complete up to now, it should be clearly stated that such funds are not for the luxury of lavish offices, but to benefit communities."
The meeting was attended by representatives of Mberengwa, Shurugwi and Zvishavane CSOTs.
In 2014, then Indigenisation and Economic Empowerment minister Francis Nhema said 61 CSOTs in the country were going to be probed for abuse of funds.
The results of the audit were, however, never made public.
Source - newsday
