[miningmx.com] — THE gloves are off in President Robert Mugabe’s Zanu-PF party after an empowerment lobby group, Upfumi Kuvadiki (Youth to the youths), demanded the ouster of executive board members of the National Indigenisation and Economic Empowerment Board (NIEEB) and called for a suspension in the implementation of community share ownership schemes by mining companies.
The NIEEB, which has admitted that it is financially crippled, is the state body that has been tasked with paying for shareholding ceded by foreign companies under contentious empowerment regulations. It is doubtful, said members of Upfumi Kuvadiki, which has close links to empowerment minister Saviour Kasukuwere, that the board will be effective in carrying out its mandate and furthering the empowerment policy.
There are concerns among mining investors and executives that the empowerment policy is being pushed through to win support for Zanu PF ahead of elections likely this year.
Upfumi Kuvadiki says it has sharp differences with the “composition of the” indigenisation board, which is set to commence negotiations with Implats over payment for a 31% stake ceded to it by Zimplats.
“We note. that the NIEEB has been a perennial failure and lacks creativity and initiative and it is time some members of this board call it quits,’ said Alison Darikayi, the president of Upfumi Kuvadiki.
Upfumi Kuvadiki, which has been rocked by internal power wrangles, said “early disbursements’ of shares ceded by foreign mining firms through community share ownership schemes will likely result in “corruption’.
“There should be exemptions in the implementation of this programme (share ownership schemes) given the technical challenges relating to the extraction and processing of minerals in Zimbabwe,’ said Darikayi.
David Chapfika, the chairman of the board was not immediately available for comment while Kasukuwere was said to be in a meeting.
