A Chinese investor is threatening to abandon a $40 million project in Zimbabwe due to alleged corruption. The Hwange Coal Gasification Company (HCGC) has lost coke worth about $2 million in five days, with government officials allegedly involved.
HCGC, a joint venture between Hwange Colliery Company Limited and China’s Taiyuan Sanxing Company Limited, is now at risk. The Chinese company holds a 75% stake, while Hwange Colliery owns the remaining 25%.
The investor, Guo Feng, is considering withdrawing from the project. This follows the loss of coke after a High Court judge confirmed an interim order in favor of Philcool Investments. The order allowed Philcool to remove 5,800 tonnes of coke from HCGC’s plant.
HCGC disputes the order, calling it fake and claiming it was never part of any court processes. The company filed an urgent High Court application to stop the seizure, but it was unsuccessful. Allegations include name-dropping President Emmerson Mnangagwa and other officials.
Sources reveal that Shepherd Tundiya, representing Philcool, obtained an irregular judgment. This judgment allowed Philcool to load 5,800 tonnes of coke from HCGC premises. The provisional order, granted by Justice Never Katiyo, is not final and needs confirmation.
Philcool Investments, along with the Deputy Sheriff, allegedly destroyed a wall to gain entry. They loaded around 80 truckloads, valued at $560,000, in a single day. HCGC lawyers filed an urgent application for rescission, but the loading continued.
Despite being served, the Deputy Sheriff refused to stop. Police reportedly stood by as Chinese supervisors at HCGC’s plant were assaulted. By Thursday, Philcool had loaded 7,500 tonnes, exceeding the court order limit by 1,700 tonnes.
HCGC claims the order is irregular, arguing it was not cited as a respondent. The order altered an original court order and allowed Philcool to take HCGC’s coke. By the end of the week, Philcool loaded an extra 2,090 tonnes, worth about $1.8 million.
The Deputy Sheriff had no writ of execution, making the execution illegal. High Court rules state that an order must have a writ of execution to be enforceable. HCGC has since written to the Judicial Services Commission (JSC), seeking an investigation.
Guo Feng, in his letter to JSC Secretary Walter Chikwanha, claimed the order did not exist. Even if it did, it was overtaken by events. He accused the sheriff of looting coke from HCGC under his boss’s instructions.
HCGC’s operations were disrupted, and the company had to shut down. The Deputy Sheriff blocked the loading of client trucks, allowing only his vehicles to be loaded with coke. Workers at HCGC also wrote to the Office of the President and Cabinet, highlighting these issues.
In 2022, a similar incident occurred where illegal thugs seized HCGC’s plant and stole coke. Workers expressed concern that the company would be left without stock. They worried about receiving wages, as Coke stock was taken away.
They reported assaults on Chinese supervisors to the police, but no action was taken. The workers’ letter to the President’s Office sought stable jobs and income to support their families. They highlighted that provisional orders cannot be enforced immediately.
Meanwhile, the Deputy Sheriff, Dumisani Muposi, refused to comment on the allegations. He referred all questions to his lawyers. Chikwanha was unavailable for comment at the time of publication.
Source: Newsday
