Vusumuzi Dube, Online News Editor
THE Bulawayo City Council’s recent approval of a cement grinding factory by Labenmon Private Limited Company at Umvumila Industrial Park, adjacent to the United College of Education (UCE) has brewed a storm within the local authority.
The decision has led to the abrupt resignation of the council’s business and investment committee chairperson, Councillor Mxolisi Mahlangu from the Finance and Development Committee, who stepped down in protest against the approval.
Clr Mahlangu had been part of a council delegation that had toured Dugongo Cement (Private) Limited in Maputo, Mozambique, which they were made to believe was also owned by Labenmon Private Limited Company.
Early this month the local authority’s full council meeting resolved to allow the company, with operations in many countries, to set up its plant in the city.
Commenting on the resolution, the city’s Finance and Development Committee chairperson, Clr Mpumelelo Moyo said this was in line with the Zimbabwe is open for business mantra by President Mnangagwa and is one of the enablers towards achieving an upper-middle-income economy by 2030.
“We first approved this investment as a committee in our meeting on 26 September as the Finance and Development Committee. As chairperson of this committee, I am so happy that we are bringing investment to the city. That is what we want and we are encouraging potential investors to come on board and invest in the city, the environment is ripe,” said Clr Moyo.
He said priority will be given to Bulawayo residents when it comes to employment and that position was made clear to the investor.
“Employment will start from the setting up of the company in the city to the production stage,” said Clr Moyo.
He revealed that Labenmon Private Limited will also import some of the cement to regional markets such as Zambia, Botswana and Mozambique.
However, according to the latest council report, it has emerged that the awarding of the operational greenlight was not as smooth as the local authority would want it to appear.
The Finance and Development Committee reportedly failed to reach a unanimous position regarding the resolution, instead, they decided to refer it to the full council for them to deliberate on.
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This was after, Clr Mahlangu, who was representing councillors during the two-day tour of the Mozambique facility, raised concern with the entire application.
In raising his concerns, Clr Mahlangu revealed that the company had misled them into believing that the Mozambique plant belonged to them which he stated was not true, hence they risked giving the lease agreement to a company with no set track record.
“As one of the council officials who had embarked on an observational visit to the cement mixing facility in Mozambique he stated that the operations of the company that they had visited were conducted in a good environment, modern equipment was being utilised, safe standards were being practiced, and there were no hazardous emissions emanating from the cement factory.
“However, he raised concerns about the ownership of the company they had visited, noting that it was not affiliated with Labenmon Investments and there was no evidence attributing to that effect, giving Labenmon Investments credit for an operation that was not theirs would prejudice council, he emphasised on the importance of adhering to good corporate governance practices,” reads the report.
However, after Clr Mahlangu had noted his concerns, the Town Clerk (Mr Christopher Dube) insisted that the committee should at least make its own decision which remains a recommendation for council to then make a decision.“Councillor Mahlangu then proposed that they allow the report to proceed to council as is for council to decide. He further said that he is the one who went to Mozambique and as such was offering his personal opinion that the committee could allow the report as was to proceed to council as recommended by management. He emphasised that this was his personal opinion, and the committee was at liberty to make its own decision,” reads the report.
Town Clerk, Mr Christopher Dube
Despite Clr Mahlangu’s concerns and his calling on the committee not to rush in granting the company the lease agreement before calling them to make a detailed presentation, the local authority hastily agreed to grant the company the green light to open the facility.
“After discussion, it was agreed that the report will proceed to council as is. However, Councillor Mahlangu made it clear that after this meeting he was officially resigning from this committee,” reads the report.
