British court throws out Zimbabwe government case against Mawere

By Violet Gonda
02 March 2006

“Grotesque extravagance” were the words used by a UK Judge in throwing out an application by the Zimbabwe government, through a nominee company, to expropriate businessman Mutumwa Mawere’s company assets.

The case which was heard in London on Thursday was between a ZANU PF front company, AMG Global Nominees Private Limited, and African Resources Limited (ARL). The Zimbabwe government needed the consent of the English courts to complete the takeover of his company.

Mawere, whose companies were seized by a presidential decree, said the judge was able to see that AMG was a government front trying to acquire his assets and said it was both illegal and unjust. He said this ruling means the takeover of his assets cannot be completed by the government.

Critics have said the Reconstruction Order which was passed into an act by parliament allows the government to take over any private company on spurious grounds of state indebtedness and insolvency.

Mawere said, “If the English court can recognise an injustice and they were the former colonial power what does that mean for you, after 26 years of independence? How far have we travelled. I thought independence was to free us from this kind of oppression but 26 years later we are being exposed to this kind of tyranny with impunity.”

The South African based businessman has in the past criticised the fact that the Zimbabwean government, which always attacks the British, is being defended and represented by British lawyers in the UK courts.

It’s reported the cash strapped government spent an estimated US$2million to pay top class UK lawyers. Mawere also said, just on this particular trip, the government spent a whopping £150 000 on first class airfares and 5 star accommodation for it’s Zimbabwean representatives. These included government appointed administrator Afaras Gwaradzimba and commercial lawyer and government purse man Edwin Manikai. Reserve Bank Governor Gideon Gono sent 4 representatives.

Mawere was accused of externalising foreign currency and was specified under the Prevention of Corruption Act, in 2004. His mines, together with companies in finance, insurance and agriculture were seized by presidential decree. He lost his flagship business, Shabanie Mashaba Mines (SMM Holdings), which he had bought for US$60m from British company Turner & Newell in 1996, to the state.

Following the expropriation of SMM Holdings by the government , an administrator Afaras Gwaradzimba, was appointed to replace the company’s board of directors and assume control of the company. Gwaradzimba is reported to have accused Mutumwa Mawere of asset-stripping the group and starving SMM of foreign currency, leading to its collapse last year.

Mawere was arrested in SA in 2004, but freed after Zimbabwe failed in its bid to get him extradited.

Just last week, Mawere was in the USA as part of his campaign to expose how his business empire has been systematically destroyed and sold off by the Zimbabwean government. He told representatives from the International Monetary Fund that the government raided his companies to pay off the IMF loan. Zimbabwe recently surprised analysts by paying off the outstanding IMF debt.

MDC official Sekai Holland has been touring the Diaspora meeting Zimbabweans in South Africa, New Zealand, USA and Britain and was at Thursday’s court hearing. She said: “It is victory for all the people who are having their properties and their rights violated by the Mugabe regime everyday. The British system hit him (Mugabe) by the head and said, you don’t do that over here!”