Hwange Colliery Shareholders Fume Over Govt Decision To Put Company Under Reconstruction

Mines and Mining Development Minister Winston Chitando has come under fire from other Hwange Colliery Company Limited (HCCL) shareholders. Chitando is accused of having unilaterally recommended that HCCL is put under administration. The other shareholders allege that the decision was made in order to cover up massive corruption involving senior management and government officials at the company. A forensic audit of HCCL is reportedly keen to establish the circumstances under which about US$6,5 million was taken out of the company. The government holds 36,7% of the shares. Nicholas Van Hoogstraten, a major shareholder who has a 31% stake in the company, said

I have not been consulted by the government on this matter. I do not believe any shareholders have been consulted. I do not know what a ‘reconstruction’ means — this is news to me. However, I would make the obvious point that Hwange has been the victim of massive corruption and mismanagement over many years, as I have repeatedly stated in the media, and complained of to the various responsible ministers — all to no avail.

More: Zimbabwe Independent