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

1.0    INTRODUCTION 

1.1 Zimbabwe’s Indigenisation and Economic Empowerment Programme is an endeavour by the Government of Zimbabwe to economically empower the previously disadvantaged and economically deprived majority of indigenous Zimbabweans, by guaranteeing them ownership and control of the country’s natural resources and the national economy. Zimbabwe’s Indigenisation and Economic Empowerment Regulations establish various mechanisms for delivering this broad-based empowerment, including the Community Share Ownership Trusts (CSOTs). CSOTs are established in terms of Section 14B of the 2010 Indigenisation and Economic Empowerment Act [Chapter 14:33] as read with the Indigenisation and Economic Empowerment General Regulations of 2010 to provide surrounding communities whose natural resources are being explored by any ‘qualifying business’ a guaranteed shareholding in businesses that are active in their area.

 CSOTs are constituted by a Deed of Trust presided over by trustees comprising Chiefs, Local Government Authority representatives and representatives from interest groups within the community. The key objective of CSOTs is to facilitate development and stimulate growth of the local economy while adding value to the wider national economy. To date, a total of 61 CSOTs have been duly registered with the Deeds Office. Of these, 60 are located in rural Zimbabwe, with one being situated in the urban area of Mabvuku -Tafara.

There has been wide-spread concern around the perceived general failure, maladministration and abuse of the country's 61 established CSOTs, including the Marange-Zimunya Community Share Ownership Trust (M-Z CSOT). These concerns arose against a backdrop of various unfulfilled commitments by qualifying businesses to provide capital that facilitates administrative and local development activities as pledged. Specifically, misgivings around the efficacy of the M-Z CSOT emanate from reports that despite the extensive mining of diamonds in the area, which is believed to be among those with the highest probable reserves globally, the local communities have not benefitted in any meaningful way. In particular, reports from community interest groups and the media alleged that the communities continue to languish in poverty and underdevelopment, unable to access the most basic services, including healthcare, schools and clean water[1]. This was suggested to be, in part, as a result of six diamond mining companies not honouring a number of key commitments made to the communities, including a $50 million contribution towards the MZ CSOT, the provision of $1,000 in compensation to families relocated from Chiadzwa mining field and derisory land allocated to resettled families.

In accordance with its mandate to examine the administration and policies of the Ministry of Youth, Indigenisation and Economic Empowerment, and matters falling under its jurisdiction, the Committee embarked on an enquiry to establish the extent of these claims. To this end, in launching its investigations the Committee set out to achieve the following objectives:

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