$4 billion looted from mining companies through indigenisation
By Tererai Karimakwenda
18 December 2012
A total of $4 billion has so far been raised by government from shares that
big mining firms were forced to give up under the National Indigenisation
and Economic Empowerment Act.
According to the state run Sunday Mail newspaper, Indigenisation and
Empowerment Minister Saviour Kasukuwere last week said the Sovereign Wealth
Fund had reached $4 billion after two more mining companies gave up 51% of
their shares in compliance.
Kasukuwere said Unki Platinum and Mimosa had finally complied with the
indigenization laws after submitting revised compliance proposals. Mimosa’s
deal raised $550 million dollars and was the most lucrative so far. A deal
with one more company, Zimplats, is expected to be cleared sometime this
week.
According to reports, mining sector officials in the country this week said
government had given them no choice but to “vendor finance” their proposals
or risk losing their operations completely.
Increased pressure on the mining firms came after ZANU PF passed resolutions
at their conference earlier this month, calling for intensified pressure on
the companies.
According to Kasukuwere $1.8 billion of the acquired shares went through the
National Indigenisation and Economic Empowerment Fund (Nieef) and the rest
is supposed to go to community trusts and employee share ownerships schemes.
Luke Zunga from the Global Zim Forum dismissed the indigenisation policies
as nothing more than massive looting. He said the communities and so-called
indigenous people, who are supposed to benefit, do not have direct access to
any of the money made through indigenisation.
“These shares are either going to be held in the Sovereign Fund or whatever,
so that they are in the control of those departments of government. It is
these organizations that decide how much to give to the communities,” Zunga
explained.
He added: “This is asking for scandal, money disappearing and people killing
each other going after the money. This is not an economic development
policy. It is not. It is simply taking over shares from people who have been
building up their companies.”
Economists have criticized ZANU PF’s indigenisation plan as massive looting
and electioneering, saying it drives away foreign investors and has a
negative impact on the economy.
The MDC formations have also received strong criticism for not being more
vocal in opposing the plans.