News / Regional
Tsholotsho RDC, timber logging company clash
25 Apr 2013 at 10:16hrs | Views
The Tsholotsho Rural District Council has approached its lawyers to recover nearly $15 000 it is owed by an organisation it awarded a tender to log timber in the district.
The council awarded South South Investment Trust, led by Messrs Charles Mazibisa and Absalom Dube a tender to log timber at Pumula Block in July 2010 but the company has not been paying royalties regularly to council.
It now owes council $14 627,75 in unpaid royalties.
According to documents, South South Investment Trust only paid $6 400 and $9 200 in October and November 2011 and the arrears have been accumulating.
However, when the council demanded payment, Mr Mazibisa and Mr Dube purporting to represent the Tsholotsho Development Association and Residents Association respectively, started accusing the council of squandering council funds.
In an interview, Tsholotsho RDC chief executive officer, Mr Themba Moyo, said the local authority terminated the company's contract to log timber as it felt shortchanged.
He said after terminating the contract, some individuals mobilised residents to petition the council, accusing it of mismanagement and corruption.
"We terminated the contract with South South to log timber and we gave them a notice in November last year following a resolution passed at a full council meeting. This was because of the company's failure to exploit resources on behalf of the community as expected and outstanding royalties" said Mr Moyo.
Mr Moyo said they intercepted a petition, which was meant to be sent to the Minister of Local Government, Rural and Urban Development, Dr Ignatius Chombo by some individuals who claimed that the community was not happy.
"We intercepted a petition that they had sent to the Governor so he could forward it to the Minister. These are just attempts to block us from claiming our money. We have approached our lawyers to seek legal advice on the way forward," he said.
Mr Moyo said Messrs Mazibisa and Dube recently snubbed an invite by Governor Thokozile Mathuthu to her office claiming that they were informed at short notice.
The District Administrator Ms Nosizi Dube said trying to engage South South authorities had been futile.
They were given a chance to work and exploit resources but failed to meet their obligation. The business association cam®; with its queries which we discussed.
"Some members are paying but their leaders are not paying at all yet they should lead by example. It boggles one's mind how they rush to accuse the council of abusing funds yet they are aware that the council has no funds because they are not paying. We have tried to engage them but they have not been forth coming," said Ms Dube.
Contacted for comment, Mr Dube played down the whole issue, saying matters involving South South Investment Trust should not be mixed with residents and community issues.
He could not be drawn into commenting on the debt his company owes council adding that it was not the right time to do so.
"We are not accusing council of abusing funds. South South is a private organisation. It is the people of Tsholotsho who have petitioned the council through their leaders. I am not a leader but just a member of the residents association," said Mr Dube.
"I am not prepared to talk about South South at this moment. Police have been there compiling their report and Minister Chombo has been told. If as South South we owe council any money, that is between us and the council."
The council gave South South Investments about one month notice to terminate the contract, citing outstanding royalties, failure to exploit required cubic metres of timber as the reasons.
On 30 November last year South South Investment responded to the council acknowledging receipt of the letter and indicated that it was failing to operate became of lack of revenue inflows owing to the demise of hardwood timber industry.
The company had requested the council to extend the notice period to March this year and when council did not accede to it, Mr Mazibisa and Mr Dube wrote to Minister Chombo seeking that he sends an audit team to Tsholotsho with the intention of pushing for the removal of Mr Moyo, Ms Dube and councillors.
The council awarded South South Investment Trust, led by Messrs Charles Mazibisa and Absalom Dube a tender to log timber at Pumula Block in July 2010 but the company has not been paying royalties regularly to council.
It now owes council $14 627,75 in unpaid royalties.
According to documents, South South Investment Trust only paid $6 400 and $9 200 in October and November 2011 and the arrears have been accumulating.
However, when the council demanded payment, Mr Mazibisa and Mr Dube purporting to represent the Tsholotsho Development Association and Residents Association respectively, started accusing the council of squandering council funds.
In an interview, Tsholotsho RDC chief executive officer, Mr Themba Moyo, said the local authority terminated the company's contract to log timber as it felt shortchanged.
He said after terminating the contract, some individuals mobilised residents to petition the council, accusing it of mismanagement and corruption.
"We terminated the contract with South South to log timber and we gave them a notice in November last year following a resolution passed at a full council meeting. This was because of the company's failure to exploit resources on behalf of the community as expected and outstanding royalties" said Mr Moyo.
Mr Moyo said they intercepted a petition, which was meant to be sent to the Minister of Local Government, Rural and Urban Development, Dr Ignatius Chombo by some individuals who claimed that the community was not happy.
"We intercepted a petition that they had sent to the Governor so he could forward it to the Minister. These are just attempts to block us from claiming our money. We have approached our lawyers to seek legal advice on the way forward," he said.
The District Administrator Ms Nosizi Dube said trying to engage South South authorities had been futile.
They were given a chance to work and exploit resources but failed to meet their obligation. The business association cam®; with its queries which we discussed.
"Some members are paying but their leaders are not paying at all yet they should lead by example. It boggles one's mind how they rush to accuse the council of abusing funds yet they are aware that the council has no funds because they are not paying. We have tried to engage them but they have not been forth coming," said Ms Dube.
Contacted for comment, Mr Dube played down the whole issue, saying matters involving South South Investment Trust should not be mixed with residents and community issues.
He could not be drawn into commenting on the debt his company owes council adding that it was not the right time to do so.
"We are not accusing council of abusing funds. South South is a private organisation. It is the people of Tsholotsho who have petitioned the council through their leaders. I am not a leader but just a member of the residents association," said Mr Dube.
"I am not prepared to talk about South South at this moment. Police have been there compiling their report and Minister Chombo has been told. If as South South we owe council any money, that is between us and the council."
The council gave South South Investments about one month notice to terminate the contract, citing outstanding royalties, failure to exploit required cubic metres of timber as the reasons.
On 30 November last year South South Investment responded to the council acknowledging receipt of the letter and indicated that it was failing to operate became of lack of revenue inflows owing to the demise of hardwood timber industry.
The company had requested the council to extend the notice period to March this year and when council did not accede to it, Mr Mazibisa and Mr Dube wrote to Minister Chombo seeking that he sends an audit team to Tsholotsho with the intention of pushing for the removal of Mr Moyo, Ms Dube and councillors.
Source - TC
