RioZim Accused of Violating Court Orders by Selling Assets During Rescue Proceedings

HARARE – The Zimbabwe Diamond and Allied Mineral Workers Union (ZDAMWU) has accused RioZim Limited of contempt of court for allegedly disposing of mining assets while a corporate rescue application filed by its workers remains pending before the courts.

In a statement, ZDAMWU General Secretary Justice Chinhema said the company is undermining legal processes by selling off key assets despite being under corporate rescue proceedings.

“On 28 April, ZDAMWU, representing RioZim employees, applied for corporate rescue. Yet, on 21 July, RioZim issued a cautionary statement to shareholders indicating it was finalising the sale of mining and non-core assets,” Chinhema said.

He noted that the company’s own legal advisors had issued an adverse opinion on the transactions, and an extraordinary general meeting was held on 1 July. On 23 July, ZDAMWU applied for a temporary interdict, which the High Court granted on 5 August 2025 under judgment HH 467/25.

Despite this, Chinhema said RioZim proceeded to sell Renco Mine in Masvingo to Feifan Mining (Private) Limited for US$35 million—before the Supreme Court granted leave to appeal on 8 October. Feifan has since taken control of Renco Mine operations.

At a recent event in Kadoma, RioZim CEO Rajgopal Swami reportedly stated that the agreement with Feifan is “kept secret in India” and would not be disclosed to authorities. Chinhema further alleged that proceeds from the sale are being handled through a Harare-based law firm’s trust account, possibly to avoid garnishment by tax authorities.

He also revealed that RioZim is under investigation by the Zimbabwe Anti-Corruption Commission for alleged money laundering and fraud.

Chinhema criticised the unexplained delay in setting down the corporate rescue application, which was submitted on 7 July, calling it a “grave miscarriage of justice.”

Meanwhile, Swami has urged workers to stop creating “hurdles” to the company’s revival, arguing that the rescue application is delaying recapitalisation and the settlement of employee arrears. He insisted that RioZim is “at the cusp of a breakthrough.”

ZDAMWU recently rejected a US$160,000 settlement offer from RioZim, calling it inadequate and lacking guarantees for broader employee and corporate welfare.

The union maintains that corporate rescue remains the only viable path to save the financially distressed company, which has failed to remit subscriptions to the workers’ representative body.