Going back to explore the SMM Saga

Mawere saga: queries on seizure of SMM assets

http://www.thestandard.co.zw/

Sunday, 24 October 2010 14:05

SMM administrator Afaras Gwaradzimba could have misled Justice minister,
Patrick Chinamasa into believing that creditors and members of the group had
assented to a scheme used to wrest Mutumwa Mawere’s empire.
Minutes of the June 24 2005 meeting show that creditors and members had
unanimously approved the scheme of reconstruction that came after government
took over the businessman’s empire because it was indebted to the state by
virtue of owing money to parastatals.
On the agenda of the 2005 meeting were: presentation by administrator of the
proposed scheme of reconstruction for SMM; questions, if any, from creditors
and members present in respect of the scheme; approval of the scheme by
creditors and members; and any other business.
The meeting was held at SMM boardroom, 6th Floor Batanai Gardens in the
central business district where Gwaradzimba presented his scheme for
consideration during the meeting.
Curiously there was no shareholder of SMM present, raising fears that the
meeting was improperly constituted.
There are also fears that those who attended could have been whipped into
rubber-stamping the scheme to complete the seizure of Mawere’s empire.
Since Gwaradzimba is an administrator of SMM, there was no way employees of
SMM subsidiaries and associates could have voted against the scheme.
Present at the meeting were employees of SMM subsidiaries and associates.
When the scheme was approved, Gwaradzimba took it to Justice minister
Patrick Chinamasa for approval.
Chinamasa approved the scheme which was presented in chamber before a High
Court judge who confirmed the scheme.
Information obtained last week shows that Gwaradzimba did not inform the
meeting that AMG Global Nominee had offered to buy the empire for US$2
million and that Mawere’s Africa Resources Limited was challenging the
transaction in a UK court.
The UK Supreme Court dismissed AMG Global Nominees and said they did not
have title to the bearer share warrants representing the ownership shares in
SMMH and THZH; the two British Virgin Islands-registered companies.
SMMH and THZH are the parent companies of the Zimbabwean operations.
Asked to comment on the meeting Gwaradzimba said: “Those issues have been
dealt with long back. All those things went through the courts and if the
courts find things to be okay, that is as far as I will go.”
The revelation is a confidence booster for Mawere who has been fighting for
the return of his seized assets.
The Zimbabwean-born businessman was in the country last week, the first time
in six years after his warrant of arrest was cancelled.
The cancellation follows his despecification on May.
Under normal procedure, the assets of a specified person are kept by the
state and returned upon the revocation of such specification. In Mawere’s
case, however, Chinamasa specified him and then came up with reconstruction
laws which seized the assets.
The co-Ministers of Home Affairs, Kembo Mohadi and Theresa Makone were
supposed to return the assets following the revocation of specification in
May.
It is understood that Mohadi has written to Chinamasa on how the Mawere saga
could be resolved.
Mohadi told Standardbusiness: “”It (the Mawere saga) doesn’t fall under my
purview.”
Chinamasa was not answering his mobile when this paper called on Friday.

BY OUR STAFF

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