BIG MISTAKE : LICENCED CHINESE FIRM HAS NO ADDRESS

Government officials have flagged the issuance of a licence to a Chinese firm to operate a cement plant in Magunje, Hurungwe district, in Mashonaland West under unclear circumstances, suggesting possible corruption.

The Magunje Cement Plant, operated by Labenmon (Pvt) Ltd, has sparked fierce opposition from local communities.

Villagers argue that the plant is too close to a critical dam, their primary source of water and is encroaching on to grazing land.

They are demanding its relocation to an industrial zone away from residential and ecological areas.

Presidential Affairs and Devolution secretary Tafadzwa Muguti last week raised concern over Environmental Management Agency (Ema)'s decision to issue an Environmental Impact Assessment (EIA) certificate to Labenmon Investments despite fierce resistance from locals.

Muguti questioned the legitimacy of the certificate, pointing out that Labenmon lacks title deeds for the land.

“Ema, I don't know what came over them — maybe they were given some ‘sugar' to turn a blind eye,” Muguti remarked, suggesting possible corruption in the approval process.

“They made a big mistake.”

Muguti was speaking at a joint meeting of Zanu PF's provincial coordinating committee and the provincial development committee on Thursday last week.

He further revealed that the company does not have a registered address, raising suspicions about tax compliance.

“As I speak, that Chinese investor has no address, which is a sure sign it is not paying taxes,” he said.

The absence of a Zimbabwe Investment Development Agency licence further indicates that the company may not be contributing to national revenue, he said.

Muguti confirmed that the Zimbabwe Anti-Corruption Commission was probing Ema for allegedly issuing an EIA certificate without proper due diligence.

Last week, Justice, Legal and Parliamentary Affairs minister Ziyambi Ziyambi visited the site and engaged villagers and the Chinese investor.

However, the community has reported cases of intimidation and arbitrary arrest of those opposed to the project.

The issue has also divided Zanu PF leadership, with factions arising over the project.

As tensions escalate, calls for transparency, accountability and strict regulatory compliance are growing. Newsday

Posted in: NEWS