Parliament calls on government to investigate Kasukuwere over Marange–Zimunya Community Share Ownership Trust within 14 days

4.13 Jinan Mining Private Limited

4.13.1 MrGoronga, the Deputy Marketing Director of Jinan, informed the Committee that in accordance with the agreement of the joint venture between Marange Resources and AFFEC two percent of the joint venture company net profits shall be allocated for the funding of the CSOT. He pointed out that pursuant to this clause Jinan had not remitted anything to the CSOT because it has been making losses since it started operations on 5 October 2012. He elaborated that the year ending December 2013 a loss of USD 56.9 million was made and the subsequent year 2014, Jinan made a loss of USD 64.3 million. Mr. Goronga pointed out that pursuant to this, the 2% which was not on gross sales but net profit was not realised. He submitted that for the past two years excluding 2015, Jinan had not made a profit.

 4.13.2 In response to the Committee’s enquiry on the USD 500 million which was siphoned from Jinan Mining Private Limited to BancABC Botswana, Mr. Goronga advised the Committee that the issue is under the Zimbabwe Republic Police, Serious Fraud Squad Department. He further advised the Committee that the name Jinan Mining Private Limited was used by two different entities. He expounded that the monies which were coming in for investment in Zimbabwe from AFFEC came through the account of "Jinan Mining Private Limited" which is not the Jinan Mining Private Limited in Chiadzwa.

5.0    RELOCATION OF CHIADZWA VILLAGERS: MANICALAND PROVINCIAL OFFICE SUBMISSION

5.1 During a courtesy call briefing with the Manicaland Provincial Administrator, Mr. Mbetsi informed the Committee that the Local Government, Rural and Urban Development circular No. 162 dated 18th November 1991 stated that, ‘“Any organisation which intends to implement a project that displaces people must take all the necessary measures to compensate all the people entitled to be compensated in respect of all the losses suffered including loss of land”. It was, therefore, the responsibility of the project sponsor to ensure that compensation is provided to the displaced families. The Committee gathered that when diamond mining began in Chiadzwa, Transau Estate was identified for the resettlement of the displaced families. The Committee was informed that the estate comprises 12 000 hectares, of which 500 hectares is occupied by the Grand Reef Aerodrome, leaving 11 500 hectares for the resettlement of displaced Chiadzwa villagers. The Committee heard that a committee was set up to oversee the relocation exercise process, under the Provincial Governor/Resident Minister. The resettlement committee comprised the Provincial Administrator (Chair), Agritex Department, Irrigation Department, Public Works Department, Ministry of Lands, District Development Fund (DDF), Zimbabwe National Water Authority (ZINWA), Physical Planning Department; Ministry of Education; and Ministry of Health and Child Care. The Committee was further informed that preliminary planning activities conducted included Chiadzwa household census, planning and demarcation of Transau, valuation of Chiadzwa households immovable property for compensation purpose, construction of core houses, blair toilets, roads, dip tanks, and drilling of new and maintenance of old boreholes.  The resettlement was also to include establishment of social and commercial facilities and more importantly, irrigation scheme that would afford relocatees sustainable livelihoods since they would depend on food handout until the completion of the scheme.

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