Ziyambi gazettes HCCL reconstruction order

RYAN CHIGOCHE

 

Justice Legal and Parliamentary Affairs Minister, Ziyambi Ziyambi yesterday placed Hwange Colliery Company Limited (HCCL) under reconstruction.

Full control of HCCL was given to the administrator,  Munashe Shava,  the chief  operating officer of Great Dyke Investments (Private) Limited, while Mutsa Remba, a Partner at Dube Manikai and Hwacha,  is the assistant administrator.

The gazetting of the reconstruction order yesterday, comes barely a month after the Supreme Court dismissed Ziyambi’s appeal seeking approval to impose a reconstruction order on the miner.

Two years ago, Ziyambi also lost the battle at the High Court, prompting him to appeal to the Supreme Court.

The gazetting of the order was done in terms of section 4 of the Reconstruction of State-Indebted Insolvent Companies Act [Chapter 24:27] (No. 27 of 2004)

“The company under reconstruction shall be under the control and management of the administrator; and  the boards of the companies under reconstruction shall be divested of the control and management of the companies’ affairs; and  any person managing or controlling the companies’ affairs in any capacity other than simply as a member of the board referred above shall continue in the office subject to the control and direction of, and be answerable to the administrator,’’ reads part of the gazette.

The administrator was also given the power subject to the rights of the creditors of the companies, to raise money in any way without the authority of the shareholders for the purpose of reconstruction of the company.

According to the gazette, the Ministry will approach the High Court seeking an order confirming the reconstruction order issued by the Minister on August 5, 2022, in relation to Hwange.

However this will not be the first time for the minister to approach the courts over the Hwange case.

On February 12, 2020, Ziyambi first submitted a request to the High Court, requesting confirmation of the initial 2018 Reconstruction Order.

He was then dismissed, prompting him to appeal to the Supreme Court and about a week ago his appeal was also dismissed.

A reconstruction is carried out to avoid bankruptcy when a company is unable to fulfil their financial obligation, that is, to pay its suppliers, salaries, taxes.

 

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