News / National
Chinese investor threatens to dump coking coal project
30 Jun 2024 at 13:29hrs | Views
A Chinese investor, Guo Feng, is facing challenges with the Hwange Coal Gasification Company (HCGC) after allegedly losing approximately US$2 million worth of coke due to what he claims are corrupt activities involving local officials. The HCGC, a joint venture between Taiyuan Sanxing Company Limited from China and Hwange Colliery Company Limited (HCCL), has been embroiled in a legal dispute over the removal of coke by Philcool Investments, based on a court order obtained by them. Guo Feng has threatened to withdraw from the US$40 million project following these incidents.
The controversy erupted after Philcool Investments, armed with a court order, purportedly seized 7,500 tonnes of coke from HCGC's premises, exceeding the prescribed limit stated in their court order. HCGC disputes the legality of this action, claiming the court order was irregularly obtained and that they were not given proper notice or opportunity to contest the removal of the coke. They argue that the Deputy Sheriff, without a writ of execution, unlawfully facilitated the removal of the coke, leading to significant financial losses for the company.
Amidst these legal battles, HCGC has lodged complaints with the Judicial Services Commission (JSC), questioning the conduct of Deputy Sheriffs involved in the removal process. They allege procedural irregularities and assert that their operations have been disrupted, impacting their ability to conduct business and maintain stability at the plant. Workers at HCGC have also expressed dismay over the situation, highlighting previous incidents of theft and disruption, and urging for intervention to safeguard their jobs and the company's operations.
The situation underscores broader concerns about rule of law and business stability in Zimbabwe, with allegations of corruption and improper enforcement of court orders affecting foreign investments and local business operations. The outcome of these legal disputes could have significant implications not only for HCGC and its stakeholders but also for the broader economic environment in the region.
The controversy erupted after Philcool Investments, armed with a court order, purportedly seized 7,500 tonnes of coke from HCGC's premises, exceeding the prescribed limit stated in their court order. HCGC disputes the legality of this action, claiming the court order was irregularly obtained and that they were not given proper notice or opportunity to contest the removal of the coke. They argue that the Deputy Sheriff, without a writ of execution, unlawfully facilitated the removal of the coke, leading to significant financial losses for the company.
The situation underscores broader concerns about rule of law and business stability in Zimbabwe, with allegations of corruption and improper enforcement of court orders affecting foreign investments and local business operations. The outcome of these legal disputes could have significant implications not only for HCGC and its stakeholders but also for the broader economic environment in the region.
Source - newsday
