Zimbabwe: ZCDC Appeal Dismissed

27 February 2020

The Supreme Court has dismissed Zimbabwe Consolidated Diamond Company' (ZCDC)'s appeal against an order barring the firm from selling Mbada Diamonds' gems in Chiadzwa.

The development is a result of an appeal against High Court Judge Tawanda Chitapi's ruling barring ZCDC from selling the diamonds belonging to Mbada's shareholder, Grandwell.

Mbada Diamond's lawyer Advocate Thembinkosi Magwaliba confirmed the development yesterday.

"The court dismissed an appeal by ZCDC," he said. "The interdict granted by the High Court on the sale of the diamonds was confirmed by the Supreme Court. ZCDC was also ordered to pay the cost of the suit."

In its appeal, ZCDC argued that Justice Chitapi's ruling was misdirected in favouring Grandwell.

"The court a quo erred at law and grossly misdirected itself when it granted on an urgent basis an order which has the effect of holding the appellant (ZCDC) in the Supreme Court appeal in contempt of court, when it was clear that no contempt of court proceedings had been launched by the first respondent (Grandwell) in terms of rule 388 of the High Court Rules 1971," said ZCDC.

Mbada Diamonds, in turn, challenged the application saying ZCDC had no rights to sell the diamonds, which were at the centre of the dispute.

"There is no necessity to sell diamonds from the concession area in respect of which there are disputes," said Grandwell's chairperson Mr David Kassel in his founding affidavit. The terms on which the diamonds are being purchased are known. The quality of the diamonds is unknown. The buyers are unknown."

Mr Kassel further contested, saying ZCDC had no capacity to compensate his company and Mbada Diamonds as it was unlawfully incorporated as a vehicle for joint ventures between the Government and private companies.

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