Yet another corporation is coming under fire for its direct involvement with the Robert Mugabe regime, after South African insurance giant Old Mutual admitted it is a major shareholder in Zimpapers.

Old Mutual this week confirmed its business interest in the publishing group which produces, among others, the state's mouthpiece Herald newspaper. South African refugee rights group, People Against Suffering, Suppression, Oppression and Poverty (PASSOP) explained that Old Mutual is the second largest shareholder in Zimpapers, essentially using insurance policy holders' money to prop up Mugabe's vehicles of propaganda and hate speech.

PASSOP's Braam Hanekom, a Zimbabwean born activist, told SW Radio Africa on Wednesday that Old Mutual was essentially 'arming' the state media, arguing "this is politically equivalent to putting bullets into the guns that kill opposition voices in Zimbabwe." Hanekom has demanded that Old Mutual publicly withdraw its stake in Zimpapers, saying the group's refusal to do so will point towards a business relationship based purely on corruption.

"Old Mutual is not making money out of selling newspapers in Zimbabwe, not so much that they can't, on moral grounds, withdraw their stake," Hanekom said. "There's no other reason to protect its stake unless there is corruption."

PASSOP started an online petition on Tuesday night, which calls for Old Mutual to withdraw its Zimpapers investment and publicly apologise. The petition is set to be delivered to Old Mutual management within the next seven days. Hanekom warned on Wednesday that the group will start protest campaigns against Old Mutual if their calls and the petition are ignored.

"Companies cannot continue to plead ignorance about their business relationships, when they know these relationships are not morally supported," Hanekom said.

The controversy is reminiscent of the Nestlé saga that erupted last month, after it emerged that the food giant was buying milk from a dairy farm, seized during the land 'reform' programme and owned by Grace Mugabe. Scores of people and organisations called for a boycott of Nestlé products, if the company did not stop buying milk from the Mugabe's Gushungo Dairy Estate. The company eventually severed its commercial ties with the Mugabes, amid intense pressure from concerned individuals and rights groups. Critics had lashed out at the food group over its disregard for basic corporate responsibility, saying multinational support of the Mugabes would ensure their continued corrupt practices.

Meanwhile, more concern has been raised over the inaction of the Mayor of Harare, Muchadeyi Masunda, who is also a Chairman of the Zimbabwe branch of Old Mutual. Masunda has been facing increasing criticism for not doing more in his position as Mayor to make changes in the capital, where rampant abuse of resources by the council has seen the city continue to deteriorate. Questions are now being raised as to why Masunda has not spoken out about Old Mutual's financial support of Zimpapers and why he has not persuaded them to divest their Zimpapers shares. We tried unsuccessfully to contact the Mayor for comment.