Zimasco (Pvt) Ltd has initiated legal proceedings to challenge what it alleges is an attempt by Kwekwe businessman Shepard Tundiya, through his company Avim Investments, to gain control of the mining company, Mining Zimbabwe has learned.
By Rudairo Mapuranga
This follows a recent High Court order obtained by Avim Investments, which, could facilitate a change in control of one of Zimbabwe’s largest chromite ore smelting companies. However, Zimasco contends that the order, issued by High Court Judge Joel Mambara, pertains to Sinosteel Zimasco (Pvt) Ltd, an entity it claims is legally distinct from Zimasco (Pvt) Ltd.
According to individuals with knowledge of the matter, Tundiya, along with associates Wilson Manase and businessman Denny Marandure, reportedly sought to access Zimasco’s Ecobank accounts on March 17, instructing the bank to change signatories. However, Ecobank is said to have declined, allegedly citing that the court order did not apply to Zimasco (Pvt) Ltd and had not been served to the correct entity.
Following this, it is further alleged that the group visited Zimasco’s head office, asserting they had legal authority to assume control of the company’s management. Zimasco’s management reportedly disputed the claim, maintaining that the court order applied only to Sinosteel Zimasco (Pvt) Ltd.
Legal representatives for Avim Investments, Kwande Legal Practitioners, subsequently sought a court ruling to clarify that Sinosteel Zimasco and Zimasco (Pvt) Ltd were the same entity, sources indicate. Justice Mambara granted this application; however, Zimasco (Pvt) Ltd contends it was not notified or served with legal documents prior to the ruling.
Despite the amended court order, Ecobank allegedly continued to withhold access to the accounts, maintaining its position that the order did not apply to Zimasco (Pvt) Ltd.
In response, Zimasco has filed an urgent High Court application challenging what it describes as an unlawful takeover attempt. Additionally, the company has reportedly submitted formal complaints to the Judicial Service Commission and the Law Society of Zimbabwe regarding the handling of the case.
Meanwhile, diplomatic sources indicate that the Chinese Embassy in Harare has expressed concern over the developments, citing Zimasco’s status as a key Chinese investment. Reports suggest the embassy has urged the Zimbabwean government to ensure that investments are safeguarded under the Bilateral Investment Protection and Promotion Agreement between China and Zimbabwe.
