News / National
Kasukuwere sued over indigenisation
13 Jun 2013 at 03:21hrs | Views
FORMER BP and Shell employees have taken Youth Development, Indigenisation and Empowerment minister Saviour Kasukuwere to court seeking to have the indigenisation of the oil company by the government reversed.
The employees accused Shingi Mutasa of ceding 21% of the remaining 26% indigenised shares as security for an undisclosed loan, leaving no room for an employee share scheme in the current group shareholding structure of Masawara.
The employees made an application for the cancellation of Masawara's acquisition of BP and Shell, arguing the move to indigenise the latter had not benefited them as anticipated.
The application by Don Nyamande, Kingston Donga, Sharon Otoo and Emmanuel Masendeke cited Kasukuwere and FMI Zimbabwe as first and second respondents respectively.
The matter was yesterday heard before High Court judge Justice Happious Zhou, who postponed judgment indefinitely after Kasukuwere argued the employees had no locus standi to take him to court over BP and Shell's indigenisation.
The minister also argued that the employees had not included BP and Shell as respondents in the matter, given that it had been indigenised.
Through their lawyer, Advocate Lewis Uriri, the employees maintained they had interest in the matter since they held 10% shares in Masawara.
They also argued it was not necessary to include BP and Shell as respondents because what was sold by BP and Shell were just shares and not the company.
The court battle between the parties came about after the employees realised the government had lost control over the shareholding of various group entities in former BP and Shell, in light of indigenisation regulations.
A report compiled by National Indigenisation and Economic Empowerment Board (NIEEB) suggested that contrary to the stipulation of indigenisation legislation, the former BP and Shell assets had been exposed to external control.
"What is happening as a result is externalisation of proceeds of business from the assets through possible supply contracts and transfer pricing," NIEEB report said.
The employees accused Shingi Mutasa of ceding 21% of the remaining 26% indigenised shares as security for an undisclosed loan, leaving no room for an employee share scheme in the current group shareholding structure of Masawara.
The employees made an application for the cancellation of Masawara's acquisition of BP and Shell, arguing the move to indigenise the latter had not benefited them as anticipated.
The application by Don Nyamande, Kingston Donga, Sharon Otoo and Emmanuel Masendeke cited Kasukuwere and FMI Zimbabwe as first and second respondents respectively.
The matter was yesterday heard before High Court judge Justice Happious Zhou, who postponed judgment indefinitely after Kasukuwere argued the employees had no locus standi to take him to court over BP and Shell's indigenisation.
The minister also argued that the employees had not included BP and Shell as respondents in the matter, given that it had been indigenised.
Through their lawyer, Advocate Lewis Uriri, the employees maintained they had interest in the matter since they held 10% shares in Masawara.
They also argued it was not necessary to include BP and Shell as respondents because what was sold by BP and Shell were just shares and not the company.
The court battle between the parties came about after the employees realised the government had lost control over the shareholding of various group entities in former BP and Shell, in light of indigenisation regulations.
A report compiled by National Indigenisation and Economic Empowerment Board (NIEEB) suggested that contrary to the stipulation of indigenisation legislation, the former BP and Shell assets had been exposed to external control.
"What is happening as a result is externalisation of proceeds of business from the assets through possible supply contracts and transfer pricing," NIEEB report said.
Source - newsday
