RioZim losses battle on Trust Bank debt

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RioZim Limited has lost its legal battle to have the loan it obtained from Trust Bank reduced to $500 000 from $1,8 million after the High Court reversed a default judgment the mining company had secured against the bank. Trust had in 2013 obtained a court order against RioZim for $1,8 million plus interest, which the bank had advanced to the company. A year later, the bank was placed under liquidation with the Depositors Protection Corporation subsequently appointed the liquidator. In May 2015, RioZim applied to the High Court for variation of the court order, which the bank had earlier obtained to recover $1,8 million. A default judgment was subsequently granted where the original order was varied and substitution thereof with the sum of $634 336. The interest of 45 percent per annum was also reduced to 25 percent. This was done without the leave of the court in terms of the Companies Act. This prompted DPC to dash to the High Court for rescission of judgment citing several illegalities that culminated in the erroneous order. Judge President Justice George Chiweshe after hearing arguments from both counsel ruled that RioZim’s application for variation was made without the leave of the court as required by the Companies Act. – The Herald, 27 June 2017 

Zimbabwe’s biggest gold producer, Metallon Corporation has completed the construction of the Mazowe Mine Processing Plant at a cost $18 million as it aims to increase monthly ore production by 65 000 tonnes. The plant is expected to be commissioned next month. Metallon, a gold mining group owned by South African businessman Mzi Khumalo owns five gold mining assets in Zimbabwe; How Mine , Shamva Mine, Mazowe Mine, Redwing Mine and Acturus Mine which is under care and maintenance. Chief executive Ken Mekani said the miner is pleased to report that construction of the new Mazowe Processing Plant is finally complete and commissioning is scheduled to commence in July, 2017. He said the group recently discovered an open-castable resource at Mazowe and production will commence soon while work was underway to double underground production at Mazowe.At How Mine, Mekani added that the group had embarked upon a shaft deepening project to access resources below 28 level at the mine. This investment is designed to secure future production of the mine.  – The Herald, 27 June 2017

Zimbabwe has put in place the necessary legal framework for the establishing specialized courts to deal with commercial disputes, in line with efforts to improve the ease of doing business. Commercial courts are a must-have for emerging markets vying for foreign direct investment since they facilitate faster resolution of disputes. Analysts contend that establishment of the Commercial Court would assist in reducing the backlog at the general courts, while also improving the ease of doing business. Zimbabwe has embarked on initiatives to attract investment, including amending various laws that have in the past hindered ease of doing business. – The Herald, 27 June 2017

Former Reserve Bank of Zimbabwe (RBZ) governor Gideon Gono yesterday returned to the limelight after being appointed chairperson of an 11 member Special Economic Zones board, while there was also a place for army boss, General Constantino Chiwenga’s wife, Marry Mubaiwa on the body. This came after President Robert Mugabe assented to the SEZ Act on October 31 last year.  – The Herald, 27 June 2017

By |June 27th, 2017|Categories: Headlines|

About the Author:

Kudzanai’s background in financial journalism with ZFN, combined with a continuing education in financial management, provide a solid grounding for his work in the research department.