President Emmerson Mnangagwa has instructed the Minister of
State for Masvingo Ezra Chadzamira to meet business tycoon Billy Rautenbach and
resolve a $1.9m tax dispute raging between Rautenbach and Mwenezi Rural
District Council (RDC).
Rautenbach who is rated as one of Zimbabwe’s wealthiest
businessmen with a fortune estimated at US$568 million is paying 10c only as
unit tax per hectare to Mwenezi RDC for the 229 000 hectare multi-million
dollar business that he runs at Nuanetsi, one of the biggest ranches in
Zimbabwe.
Council pegged Rautenbach’s unit tax at $1 per hectare and
his company, Zimbabwe Bio Energy (ZBE) has ignored that tax obligation since
2009. As a result of the dispute, Rautenbach is paying $22 900
unit tax per year instead of $229 000.
Nuanetsi Ranch has over 40 000 cattle, 150 000 crocodiles
and Rautenbach operates a big safari with all types of wild animals where
tourists from the USA and Europe come to view and hunt game.
Chadzamira confirmed to The Mirror that he would be meeting
Rautenbach together with officials and councilors from Mwenezi RDC on Thursday
(today) and the meeting will take place at the council offices.
Efforts to get a comment from Rautenbech were fruitless and
questions sent to his office on email were not answered. A 2017 audit directed council to deal with the tax issue.
“I have instructed Mr Fungai Mbetsa (the Provincial
Administrator) to arrange a meeting next week where we will meet Rautenbach and
tell him Government position on his operations. I can’t tell you what we are
going to discuss with him at the moment”, said Chadzamira.
Mwenezi CEO Abert Chivanga told The Mirror that ZBE had
since 2009 been paying 10c unit tax to Mwenezi instead of $1 per hectare and as
a result there are arrears of over $1 854 900. He said the company pegged its
own unit tax and started paying what it pegged.
“ZBE should pay Mwenezi RDC $229 000 per year but they have
only been paying a paltry $22 900 which they have pegged without the RDC’s
approval,” said Chivanga.
Chivanga said the local authority needed that money to
balance its books since the funds have been budgeted for. He said he wrote a
letter to Rautenbach last week on the issue which he personally handed over.
Chadzamira castigated some white owned companies in the
area during a Zanu PF rally in Mwenezi in February and criticized the manner in
which they were conducting their businesses. In particular he said he was not
happy with the way locals were treated.
“We have some whites who have wildlife conservancies. They
are enjoying selling trophies outside and slaughtering the wildlife for
butcheries without doing corporate social responsibility programmes. He who
does not respect people, has no place in the new dispensation,” Chadzamira said
then.
Mnangagwa weighed in on the same day and said, “There are
some whites with big farms and yet deny people drinking water. Am told
villagers get salty water and yet fresh water goes to animals. I say to
Chadzamira, bring the culprit to me on Monday or Tuesday and repeat what you
said while he is there and see how he leaves my office,” Mnangagwa said. Masvingo
Mirror
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