Mawere takes fight for companies to the SA High Court

By Violet Gonda
22 May 2007

Zimbabwean business mogul Mutumwa Mawere, who had his business empire seized by the Zimbabwean government in 2004, has taken the case to the South African High Court. The South African based businessman has been on a campaign to expose how his business empire was systematically destroyed and is being sold off by the Zimbabwean government. He was accused of externalizing foreign currency and his assets were frozen by the Mugabe regime under the Prevention of Corruption Act in 2004.

The government passed a decree which paved the way for it to appoint an administrator, which reports to the cabinet, to run his companies. “For the first time in Zimbabwe’s history you have a political monster appointed by politicians purporting to be creditors. The administrator then comes into South African jurisdiction exporting the illegal actions that were taken in Zimbabwe,” Mawere said.

35 companies of his were affected including his SA companies that were supplying goods and services to Zimbabwe. The businessman is appealing to the South African courts not to recognize Zimbabwe’s controversial nationalization laws, which violate international laws. He said: “Recognizing that law is actually assisting in the enforcement of expropriation action by Zimbabwe.”

Mawere’s vast business empire included Zimbabwe's sole asbestos mining company Shabanie Mashaba Mines, plus Fidelity Life Insurance, ZIMRE Holdings, CFI Holdings and First Bank.

The businessman has filed the application in South Africa’s Supreme Court but the constitutional court has sent the matter to the High Court. Mawere said they did not deal with the merit of the case but the procedure.