Sources at the parastatal told The Zimbabwean that German bankers, KFW Bankgruppe, who are owed about $150 million, have moved closer to attaching property at the Redcliff based plant.
It is understood that ZISCO’s debt to the Germans has been outstanding since 1998. In 2010, the German bankers attached several estates owned by the Zimbabwean government in South Africa but put the exercise at hold when news filtered that Essar Africa Holdings was going to pour $750 million into ZISCO and own all outstanding debts incurred by the parastatal.
Inside sources at ZISCO this week told The Zimbabwean that after about three years of waiting, the German bankers have finally made the decision to attach ZISCO’s property.
“The German bankers have been in touch with Essar’s resident director for Middle East, Africa and Turkey, Firdhose Coovadia, over the debt. At first the deliberations seemed to be heading towards a win-win settlement for the two parties but now there seems to be no hope because the inclusive government is about to end,” said the source.
There are other smaller creditors contemplating the same route. Failure of the speedy implementation of the ZISCO deal has largely been blamed on the Mines ministry headed by Zanu (PF)’s Obert Mpofu, which has been reluctant to release iron ore claims previously owned by the firm.
Last week, a top private security firm, Fawcett Security Operations, confiscated a vehicle at ZISCO’s plant after having been granted a High Court order to attach property over a $10,000 debt.
The order was granted by the High Court sitting in Bulawayo on February 12. The case was over a capital debt of $10,545 owed to Fawcett. The security company was represented by lawyers from Coghlan and Welsh law firm.
The writ of execution was initially served to Ziscosteel company secretary on March 25 when the deputy sheriff attempted to attach movable property at Ziscosteel’s main plant in Redcliff.
The Deputy Sheriff Energy Pedzera, however, failed to attach the property after the secretary is reported to have told him that Ziscosteel turned him down. He was told that company protocol did not allow junior employees to entertain matters of the firm’s property.
Post published in: News