MUTARE- Workers at Metallon Gold unit, Redwing Mine have requested it’s legal representative to instruct the company’s interim corporate rescue practitioner (ICRP) Knowledge Hofisi to reverse a tributary agreement signed with Betterbrands Mining company, a company owned by Pedzisai Scott Sakupwanya.
In a letter instructing the legal representative of the company Reynos Gumbo, copied to Hofisi, workers stated that the Tributary Agreement signed with Betterbrands contravened the Insolvency Act 137 part 3(g) and was against a creditors’ resolution of 9 September 2021.
The workers committee instructed Gumbo to immediately cancel the Tributary Agreement with Betterbrands, citing its failure to conform to legal statutes as well as a rescue plan to pay creditors- the major creditors being over 300 workers.
Workers also cited the failure by the ICRP to create a Special Purpose Vehicle, between Betterbrands, Prime Royal and Properdeck, to co-direct works under the corporate rescue as another hanging matter to be resolved.
“The awarding of the Tribute Agreement to Betterbrands Mining Company was done without consultation and subsequent approval by the Creditors Committee. It flies in the face of the Corporate Rescue Plan which was voted for on the Creditors meeting of 9 September 2021.
“The Tribute Agreement does not have a rescue plan to pay creditors. The tribute agreement does not conform to part 615 of the minutes adopted in the Creditors Meeting on the 9th of September 2021, on the job security of employees…
“We are hereby instructing you (Gumbo legal representative) to inform the ICRP to cancel the current agreement signed between him and Betterbrands immediately. We are willing to pursue the legal route should the ICRP continue to disregard our rights as the major creditor,” read part of the letter.
A worker at the mine who spoke on condition of anonymity revealed that chaos has reigned since the coming in of Betterbrands, which initially appeared to be in partnership with Prime Royal mining company.
Some sections of the workforce said the initial agreement with Prime Royal was better as the workers had part of their salary arrears paid, while the working conditions slightly improved.
“We don’t know who is making these decisions for us but as far as we are concerned all we want is to work and get paid like when Prime Royal came, we could see that there was direction now this company Better brands is not better, its from bad to worse,” said the worker.
The workers are also up in arms over what they termed misrepresentation after claims that they supported the return of Betterbrands.
Incidentally on 3 February 2022, over 200 workers confronted the ICRP and the legal representative for their attempt to bring back Betterbrands, leading to the team leaving Redwing premises in a huff without explaining the new agreement.
Similarly, in the letter workers are challenging this material fact, stating boldly that they neither supported the return of Betterbrands nor even glean the Tributary Agreement from the ICRP as well as minutes of the meeting which have remained a secret.
“The minutes of the meeting on 13 January 2022 on part 3.7 states that Redwing employees supported the handover of the mine to Betterbrands. This is grossly untrue and you (Gumbo) yourself can attest to it when you visited the mine on February 2022.
“The agreement and the minutes were not made known to the employees to this date.
“In view of the above we feel that the agreement made between Betterbrands and the ICRP is in contravention of all provisions guiding Corporate Rescue under the Insolvency Act and our interests as creditors,” read part of the letter.
