News / National
Zimbabwe's indigenisation laws 'to carry on'
14 Jun 2011 at 11:14hrs | Views
THE scathing attack levelled by Zimbabwe's parliament on that country's Indigenisation and Economic Empowerment Act should not be interpreted as the end of the controversial legislation, an official of the Chamber of Mines of Zimbabwe said on Tuesday.
The warning came after a Zimbabwe parliamentary legal committee said on Friday that the hefty penalties proposed for non-compliance are grossly disproportionate with the offences committed and in violation of the country's constitution.
The committee report, submitted by chairperson Shepherd Mushonga, pointed to the fact that most violations including the failure to submit a plan or respond to notices were punishable by a level 12 fine or five years' imprisonment, or both.
All the offences created by the regulations are punishable by either a level 12 fine or a prison term of up to five years, read the report.
No consideration of the nature and quality of the offence is made. Although this penalty is permissable under section 21 of the parent act, it is permissible as the maximum punishment applicable. It should not be taken as a one-size-fits-all prescription. Regard must be had to the nature and quality of the offence.
It is the view of the committee that the above penalties are disproportionate to the offences committed. The law in Zimbabwe regards penalties that are disproportionate to the offence as unconstitutional.
The law, proposed by Youth, Indigenisation and Economic Empowerment Minister Saviour Kasukuwere, would force all foreign-owned companies to cede their majority stake to black Zimbabwe.
Major mining companies which are operating in Zimbabwe include Anglo American, Impala Platinum and Aquarius Platinum.
A senior executive of the Chamber of Mines of Zimbabwe, Doug Verden, told Miningmx the committee report should interpreted as a step in the process to ensure the law meets all constitutional requirements.
This is not the end, said Verdun. They looked at the legality of the law, not the content.
He said the legislation would probably go back to Kasukuwere's ministry for revision. For it to be repealed it has to be gazetted, and that hasn't happened as far as we know, said Verden. It may come back (following revision) the same way, just more legally adept.
Under the law, mining companies were granted until the beginning of June to submit proposals on how they would go about transferring majority ownership to Zimbabweans.
According to a Bloomberg report, the chamber in April proposed a combination of equity and credits for social investments as way to fulfill the indigenisation policy.
The chamber's own proposals to government had been for a minimum indigenisation quota of 26% equity, with the balance of 25% made up of credits arising from corporate social investments, support to the small-scale mining sector, local procurement, skills development, release of ground and establishment of new businesses, read a chamber statement.
The warning came after a Zimbabwe parliamentary legal committee said on Friday that the hefty penalties proposed for non-compliance are grossly disproportionate with the offences committed and in violation of the country's constitution.
The committee report, submitted by chairperson Shepherd Mushonga, pointed to the fact that most violations including the failure to submit a plan or respond to notices were punishable by a level 12 fine or five years' imprisonment, or both.
All the offences created by the regulations are punishable by either a level 12 fine or a prison term of up to five years, read the report.
No consideration of the nature and quality of the offence is made. Although this penalty is permissable under section 21 of the parent act, it is permissible as the maximum punishment applicable. It should not be taken as a one-size-fits-all prescription. Regard must be had to the nature and quality of the offence.
It is the view of the committee that the above penalties are disproportionate to the offences committed. The law in Zimbabwe regards penalties that are disproportionate to the offence as unconstitutional.
The law, proposed by Youth, Indigenisation and Economic Empowerment Minister Saviour Kasukuwere, would force all foreign-owned companies to cede their majority stake to black Zimbabwe.
A senior executive of the Chamber of Mines of Zimbabwe, Doug Verden, told Miningmx the committee report should interpreted as a step in the process to ensure the law meets all constitutional requirements.
This is not the end, said Verdun. They looked at the legality of the law, not the content.
He said the legislation would probably go back to Kasukuwere's ministry for revision. For it to be repealed it has to be gazetted, and that hasn't happened as far as we know, said Verden. It may come back (following revision) the same way, just more legally adept.
Under the law, mining companies were granted until the beginning of June to submit proposals on how they would go about transferring majority ownership to Zimbabweans.
According to a Bloomberg report, the chamber in April proposed a combination of equity and credits for social investments as way to fulfill the indigenisation policy.
The chamber's own proposals to government had been for a minimum indigenisation quota of 26% equity, with the balance of 25% made up of credits arising from corporate social investments, support to the small-scale mining sector, local procurement, skills development, release of ground and establishment of new businesses, read a chamber statement.
Source - Miningmx
