New guidelines for Community Share Ownership Trusts

13 Jul, 2014 - 06:07 0 Views

The Sunday Mail

Government has introduced a raft of measures to strengthen monitoring and administrative mechanisms of Community Share Ownership Trusts, which have been riddled by allegations of lack of transparency and accountability, prejudicing communities of development.
The measures are in line with the objectives of the Zimbabwe Agenda for Sustainable Socio-Economic Transformation, which, among other things, seeks to develop infrastructure, utilities and services in communities.

Under the Indigenisation and Economic Empowerment Act, the country has established 59 CSOTs where foreign companies are mandated to contribute to development in the areas they operate in.

However, there have been allegations of abuse of funds in some of the trusts, while some have simply not contributed the money they pledged they would.

National Indigenisation and Economic Empowerment Board manager for the trusts Mr Rangu Nyamurundira told The Sunday Mail that the parent Youth, Indigenisation and Empowerment Ministry had put in place strict monitoring and administration mechanisms.

The guidelines, he said, were crafted in consultation with communities and the trusts.
“There will be a needs assessment by the community because they are the ones who know what they want.

“We are moving from situations where a rural district council could decide on projects. The interests and needs of the community will come first,” said Mr Nyamurundira

“All the tenders will now be made public, but preference will be given to local communities.
“Procurement from communities must come first, because President Mugabe has made it clear that (CSOTs) are meant for the people.”

Mr Nyamurundira said the new measures were meant to strengthen operations of the trusts and their reporting systems in the interest of communities and in line with Zim-Asset.

“The communities will now decide how they want the trusts to operate, what they think must be done from proceeds of the shares and influence the day-to-day activities of the trusts.

“The new guidelines make clear the issue of separation of powers, role of the boards and the secretariat to avoid unnecessary conflicts.

“We have had problems where the boards were behaving as full-time employees of the community trusts,” said Mr Nyamurundira.

Mining companies pledged to contribute billions of dollars to fund the 59 trusts but to date only 14 are functional.
Notable progress has been registered in the Tongogara CSOT in Shurugwi and Mhondoro-Ngezi in Mashonland West.

Schemes in areas such as Zimunya-Marange have failed to take off after mining companies allegedly reneged on their promises. Out of US$50 million pledged by the firms operating in the Chiadzwa diamond fields, only US$400 000 has been released to the Trust.

 

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