eBusiness Weekly
Martin Kadzere
Seasoned lawyer Muchadeyi Masunda, has backed Attorney-General’s position that Parliament has no authority to exercise oversight role over non-state firms such as Hwange Colliery.
AG Prince Machaya attracted widespread criticism after he told the committee on Mines and Energy to stop interfering with HCCL affairs, arguing it was outside its jurisdiction.
This was after legislator Temba Mliswa’s led committee — which had gone to Hwange for a fact-finding mission — was snubbed by administrator Bekithemba Moyo on the grounds that he had no obligation to entertain the committee since HCCL is not a parastatal.
Critics used social media platforms, arguing that the committee had authority to probe the affairs at Hwange since the Government, through the Mines Ministry owns shares.
Mliswa, the Norton constituency legislator blasted the administrator, saying he was ill-informed.
“As Parliament, we are the people’s eye. We represent the people. We need to understand the vision of the administrator. It’s an inquiry, so I don’t know why he behaved in such a way when the new dispensation is talking about accountability,” he said.
However, Masunda, who worked for HCCL in the 70s when it was owned by Anglo America Corp, said it was well within the rights of the administrator in declining to accommodate members of the Parliamentary Portfolio Committee on Mines and Energy.
“I heartily endorse the legal opinion proffered by Advocate Prince Machaya, the Attorney-General of Zimbabwe, to the overall effect that the Parliamentary Portfolio Committee on Mines and Energy has no locus standi whatsoever to probe into the goings on at HCCL,” Masunda told Business Weekly.
“The simple fact of the matter, which seems to elude the feisty and mercurial Mliswa and his colleagues on the Parliamentary Portfolio Committee on Mines and Energy is that HCCL is neither a parastatal nor a State-owned company. HCCL is a public company which is governed by its Memorandum and Articles of Association.
“HCCL has been in existence since 1902 and is listed on the Zimbabwe Stock Exchange, Johannesburg Stock Exchange and London Stock Exchange. HCCL is, therefore obliged to abide by the fairly comprehensive and stringent listing requirements that apply to all companies which are listed on these three bourses.
“I would not be surprised to learn that the HCCL’s shares have been suspended from trading on the ZSE, JSE and LSE following the placement of the company under administration at the behest of the Minister of Justice, Legal & Parliamentary Affairs.”
The Government, through the Ministry of Mines and Mining Development, is the largest single shareholder in HCCL with a shareholding of 38 percent. The stake was acquired from AAC in the mid-80s on the basis of a willing- buyer, willing-seller.
The other significant shareholder in HCCL is British tycoon Nicholas van Hoogstraten, through various special purpose investment vehicles, believed to be owned and controlled by him, his family or individuals closely associated with him.
In addition, HCCL has other shareholders, especially minority shareholders, whose interests “cannot and should not be trampled upon with such mind boggling impunity”.
“In the light of what has so far transpired at HCCL, the company should, by now, have issued the obligatory cautionary statements apprising the stock and capital markets in Zimbabwe, South Africa and the UK of the pertinent developments,” said Masunda.
