Mbada Diamonds seeks order to stop ‘theft’

Source: Mbada Diamonds seeks order to stop ‘theft’ – NewsDay Zimbabwe March 30, 2017

Grandwell Holdings (Pvt) Ltd has once again approached the High Court seeking another order to compel the Zimbabwe Consolidated Diamond Company (ZCDC) to stop continuously “stealing” its ore from Mbada Diamonds claims.

BY CHARLES LAITON

The company is also seeking an order to force the Zimbabwe Republic Police, through Commissioner-General Augustine Chihuri, to move out of its mining concession and to allow Mbada Diamonds security personnel to take charge of its ore, diamonds and other company property as per the initial order issued in March last year.

In the urgent chamber application filed on Monday this week, Mbada’s security manager Donald Dube said his firm was losing valuable ore that was “being removed without any recorded chain of possession of the ore and the diamonds to be extracted from the ore” by the government’s firm.

“It will be virtually impossible to separate the work and the property of the third respondent (Mbada Diamonds) from the work of the first respondent (Zcdc) or to determine the value removed,” Dube said.

“The first and second respondents’ (Zcdc and Chihuri) conduct constitutes complete disregard and contempt of an order made by this honourable court. Every day that passes with continuation of such conduct has serious negative consequences on the administration of justice and the reputation and authority of our courts.”

According to Dube, on March 16, 2016, Grandwell Holdings obtained an order against Zcdc and Chihuri together with others on behalf of Mbada Diamonds, which order granted the latter’s security personnel to remain at the mine to safeguard its property.

“The 3rd respondent’s security personnel were in possession of the concession area, mined diamond ore, diamonds and other property of the 3rd respondent following the order of the 16th of March 2016 for almost a year. It was, however, illicitly and contemptuously disposed,” Dube said.

“On the 24th of February 2017, following an urgent chamber application, the applicant (Grandwell Holdings) obtained a derivative order in favour of the 3rd respondent (Mbada Diamonds) and in its own favour. Relief in this matter is sought derivatively to execute pending appeal, an order obtained in a derivative action under case number 1290/17.

“On the 17th of March 2017, the applicant’s legal practitioners received a notice of appeal by the 1st respondent (Zcdc). The matter in respect of which the appeal has been filed by the 1st respondent was urgent and remains particularly in that the dispossession is taking place right now.”

Grandwell Holdings further said the bringing-in of a security consultancy, by the government, which security was previously used by Mbada Holdings, “was likely to cause theft of diamonds belonging to the latter which had been secured and were under the watch of its security personnel.

“If the first and second respondents continue with their conduct, rights meant to be secured by litigation pending before the courts will be rendered nugatory and the applicant and the third respondent will suffer irreparable harm,” Dube said.

“Nothing will be suffered by the respondents complying with an order of this honourable court and awaiting the determination of the matters. The Chiadzwa diamond mining area is a massive area. The 1st respondent mines in the area previously mined by Marange Resources.

There is no necessity for it to enter the 3rd respondent’s concession area where it is collecting mined diamond ore.”
The matter is yet to be set down for hearing.