Published by the government of Zimbabwe
6 January 2009
Harare — AMG Global has defied a court ruling to hand over share certificates of Shabani Mashava Mine Holdings to former owners Turnall and Newall, nearly a month after the English Court ruled that African Resources Limited has not defaulted payment for the acquisition of the local asbestos mining firm.
ARL has written to Turnall and Newall expressing concern over their apparent reluctance to physically take custody of the share certificates of SMMH in accordance with the London Court's ruling that nullified the sale of the shares to AMG Global.
SMMH is a London-registered parent company for SMM.
An English Court ruled recently that ARL, did not default in payment to T&N for the acquisition of SMM, effectively setting aside share sale by T&N to AMG.
AMG had approached T&N to buy shares in SMM after ARL failed to fulfill the installments.
AMG is fronted by SMM's Government- appointed administrator Mr Afaras Gwaradzimba while ARL, a London-registered parent company of SMMH, is led by businessman Mr Mutumwa Mawere.
"It appears that Mr Chris Boydell (from T&N) on behalf of your company did confirm that your company did not wish the warrants to be physically returned to it at the stage and, therefore, an agreement was then reached that such valuable piece of paper remain in the hands of AMG's attorneys," wrote ARL to T&N last week.
"The effect of Mr Boydell's decision as stated by Reed Smith (AMG lawyers) is to nullify a court order.
"I must say that we have not seen any documentary confirmation from Mr Boydell that the version of RS is an accurate one but what is of concern is the appearance of some collusion between AMG and T&N."
ARL took great exception to T&N's letter in which one of the directors indicated that he had no information to the dispute since he was fairly new to the company.
"Clearly, what seems to be at play is that AMG has decided to keep the bearer share warrants in anticipation of your next move and to the extent that you are now throwing me to your legal representatives it appears that a decision has been made by your company not to entertain this matter and claim ignorance on the factual and legal issues," wrote ARL.
The letter by ARL follows one written by AMG's lawyers that notwithstanding a Court directive to return share warrants to T&N by November 28 2008, they had reached an agreement between them and T&N for AMG Attorneys to hold on to the share certificates.
"We have delivered ownership of the warrants to T & N and they have accepted ownership. However, T&N have informed us they do not, at this stage, wish to take physical possession of the warrants, and have agreed that we should hold the warrants to their order. We now do," wrote AMG's lawyers.
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