Harare — South Africa-based businessman Mr Mutumwa Mawere still faces criminal charges over his conduct at Shabanie Mashava Mine despite his recent de-specification, Government has said.

Mawere's companies, among them SMM Zimbabwe, were placed under the care of a State-appoi-nted administrator under Zimbabwe's reconstru-ction laws while he was specified by the Minister of Home Affairs.

The businessman, along with former Telecel chairman Mr James Makamba, was last month de-specified.

In a statement yesterday, Justice and Legal Affairs Minister Patrick Chinamasa said the de-specification had no bearing on the criminal charges Mawere is facing.

He said the reconstruction of SMMZ would proceed in accordance with the law.

The statement comes at a time when Mr Mawere has launched a constitutional challenge to invalidate several provisions of the Reconstruction of State-Indebted and Insolvency Companies Act at the Supreme Court.

Minister Chinamasa said the de-specification "does not, on its own, mean that he is no longer facing criminal charges arising out of his conduct which gave rise to the reconstruction of SMMZ and indeed his specification under the Prevention of Corruption Act".

"Furthermore, the de-specification has no bearing on the reconstruction of SMMZ, which will proceed and be concluded according to the Reconstru-ction Act," he added.

Minister Chinamasa said Mr Mawere and several other organisations stood accused of prejudicing the company of various amounts of money as declared by the administrator Mr Afaras Gwara-dzimba.

In his culpability statement on September 18, 2006 Mr Gwaradzimba said Mr Mawere had prejudiced SMMZ of £138 000, CAD$625 000, R53 million and ZW$66,59 million.

"As the administrator was not persuaded to amend his culpability statement, he was obliged and did apply to a judge in chambers for confirmation of the culpability of the culpable persons.

"This application is pending before the High Court under case number HC 6684/06.

"It will be apparent from the aforegoing that Mr Mawere has, therefore, been declared culpable in accordance with the provisions of the law.

"What remains is for the judge to consider for the confirmation of his culpability," he said.

SMMZ was placed under the care of an administrator in 2004 following Mr Mawere's specification in June that year.

Mr Mawere challenged the reconstruction order at the High Court, but lost his application while the

Supreme Court also dismissed his appeal.

Yesterday Mawere's lawyers were back at the Supreme Court challenging the constitutionality of the reconstruction laws.

A five-judge panel led by Chief Justice Godfrey Chidyausiku and comprising Deputy Chief Justice Luke Malaba and Justices Wilson Sandura, Misheck Cheda and Paddington Garwe reserved judgement to a later date.

Mr Mawere's lawyer, Advocate Adrian de Bourbon, argued that certain sections of the Act breached Section 89 of Zimbabwe's Constitution by depriving a company's right to be heard in court without seeking leave from the administrator.

"The Reconstruction Act should be declared unconstitutional. The right to be heard in court has been violated."

He also said they should also be allowed to challenge the appropriateness of the administrator.

Adv de Bourbon further argued that reconstruction amounted to compulsory acquisition of companies.

Mr Edwin Manikai -- representing the Minister of Justice and Mr Gwaradzimba -- countered that the law did not take away the right to be heard but instead "lays out the process as to how the right should be exercised".

"There is no acquisition but the administrator is only in control of the entity as required by the law with the sole purpose of ensuring resuscitation of the business.

"The administrator is assuming powers ordinarily given to directors and shareholders."

On the issue of sale of SMMZ shares, Mr Manikai said it was proper as long as it was done in consultation with shareholders.