High Court reserves judgment in Mawere case

By Lance Guma
27 June 2006

The High Court Monday reserved judgment in a case in which businessman Mutumwa Mawere is challenging the takeover of his Shabanie Mashaba Mine (SMM) holdings by the government. Justice Rita Makarau sitting in chambers heard the case in which Justice Minister Patrick Chinamasa is the respondent. Mawere is challenging the reconstruction order issued by Chinamasa which paved the way for the takeover of his business empire. The Justice Minister crafted the ‘Reconstruction of State-Indebted Insolvent Companies Act’ which he rammed through parliament courtesy of Zanu PF’s majority.

Mawere told Newsreel that reserved judgments in Zimbabwe could mean any number of things from deliberate delays to judges needing more time to look into the arguments. ‘Even if I got a judgment in my favour, its not a cause for joy anyway, I’m doing this for the records, because next time it will be someone else losing their property,’ he said. The businessman says it seemed instead of ‘rule of law’ the government was implementing ‘rule by law.’ He said ‘they can pass decrees using presidential powers to undermine and interfere with the rights of private citizens,’ adding its always the state that ends up the beneficiary of that interference.

The government sold seven companies owned by Mawere to several ruling party officials. The move was seen as retribution for the tycoon having informed the International Monetary Fund (IMF) that Mugabe’s regime was raiding private foreign currency accounts to pay its arrears. The government on the other hand accused Mawere of defrauding them of over Z$300 billion in undeclared foreign currency earnings. Mawere denies the charge and says this was just a pretext to take over his companies. Mobile network service provider Firstel Cellular, Regatta Financial Advisory Services, security firm Midsec, FSI Trading, Fortress Travel and Tours, Masvingo Brick and Tile Company and public relations firm Words and Images were all sold.