Justice, Legal and Parliamentary Affairs minister Ziyambi Ziyambi has defended Government’s decision to put Hwange Colliery Company Limited (HCCL) under administration as it was making losses.
Giving evidence before a parliamentary portfolio committee on Mines and Mining Development on Monday, Ziyambi said he used his discretion as Justice minister after getting a report from his Mines counterpart on the problems at the Zimbabwe Stock Exchange (ZSE) listed company after consultations with the Attorney General.
Ziyambi said HCCL was on the verge of liquidation in 2016 as creditors were trying to recoup their monies. Government placed HCCL under Administration on October 10, which subsequently resulted in its suspension on the ZSE.
Ziyambi said they were now waiting for the High Court to approve the reconstruction process before they start settling debts. Government will also engage other stakeholders on the way forward.
HCCL has been operating under losses for the past five years. It registered a loss of $23 million for the six months to June despite having receiving financial bailout from government.
DBF Capital partner Beki Moyo was appointed the miner’s administrator.