Govt Sacks SMM Assistant Administrator Kazembe

By Nyashadzashe Ndoro - Chief Reporter

The Zimbabwean government has revoked the appointment of Clyton Kazembe as Assistant Administrator for Shabanie & Mashaba Mines Private Limited Holdings Pvt Limited.

The decision, announced in the Government Gazette on May 27, 2025, by the Minister of Justice, Legal and Parliamentary Affairs, Ziyambi Ziyambi, is effective from the date of publication of the notice.

The revocation was made in terms of section 4 of the Reconstruction of State-Indebted Insolvent Companies Act [Chapter 24:27], following consultation with the Minister of Finance, Economic Development and Investment Promotion Mthuli Ncube.

This amendment specifically targets the Reconstruction Order issued in relation to SMM Holdings, which was initially published in General Notice 4508 of 2004.

SMM Holdings, which previously owned the Shabanie and Gaths asbestos mines, ceased operations approximately one and a half decades ago due to funding issues and corporate disputes. The company was placed under reconstruction on September 16, 2004, and this order was confirmed by the High Court on December 15, 2005.

This development comes after past accusations against the long-standing SMM Holdings administrator, Afaras Gwaradzimba. In April 2021, Gwaradzimba faced allegations of selling land under the company's mining leases with the intention of converting it into residential stands.

Employees of SMM, represented by the Zimbabwe Diamond and Allied Minerals Workers Union, had lodged an application in April 2021 to the Minister of Justice, Legal and Parliamentary Affairs, expressing concern over the disposal of SMM land.

They argued that such actions contradicted the original purpose of the 2004 reconstruction order. The workers further claimed that the alleged land deals undermined the viability of SMM as a going concern and that Gwaradzimba had "abdicated and abandoned his primary duty of securing investors to resuscitate second respondent and then service the company debts."

The workers' application also highlighted their assertion that Gwaradzimba's continued tenure as administrator was illegal. They cited an alleged admission by Gwaradzimba that he had been relieved of his administrative duties when the company's management was transferred from the Ministry of Justice to the Zimbabwe Mining Development Company under the Mines and Mining Development Ministry, only to be informally re-appointed by a Cabinet Committee.

Beyond the land dispute, the workers also alleged significant outstanding financial obligations, including approximately US$19.2 million in current worker salary arrears between January 2012 and November 2017, and US$17.6 million owed to nearly 1000 ex-employees.

Additionally, the company reportedly has outstanding obligations of about US$3.4 million to the Mining Industry and Pension Funds and US$2.7 million to the National Social Security Authority.