A legal bid by Zanu PF politburo member Omega Hungwe to retain control of mining machinery after a soured joint venture has been dismissed by the High Court, which ruled that the matter must be resolved through arbitration.
The dispute centers on a contractual agreement between Hungwe and Huwambo (Pvt) Ltd, in which the parties had agreed that any disagreements would be settled outside the courts. Clause 15 of the contract outlines that arbitration is the sole mechanism for dispute resolution, with an arbitrator to be appointed by the president of the Commercial Arbitration Centre in Harare if the parties fail to agree on one.
Despite this clause, Hungwe approached the High Court seeking an interdict to prevent Huwambo from removing mining machinery from 65 VA Great Riversdale Farm in Mazowe. She argued that the equipment should be retained as security for her legal entitlements, including compensation for Huwambo’s alleged breach of contract.
High Court judge Justice Maxwell Takuva ruled that the court lacked jurisdiction over the case, striking it off the roll.
The legal dispute dates back to October 2023, when Hungwe and Huwambo signed a contract to extract minerals from Hungwe’s Mazowe farm under a special grant from the Mines and Mining Development Ministry. The agreement required Huwambo to begin mining operations within six months.
Hungwe later accused Huwambo of failing to meet its obligations, resulting in financial losses. The conflict escalated in May 2024 when Huwambo allegedly attempted to seize machinery that Hungwe had been holding as security for unpaid compensation.
Huwambo opposed Hungwe’s court application, arguing that the High Court had no authority over the dispute due to the arbitration clause. Justice Takuva upheld this argument, stating that the contract unambiguously excluded court intervention.
The ruling means that Hungwe and Huwambo must now settle their dispute through arbitration, as stipulated in their agreement. The judge also ordered Huwambo to cover the legal costs of the case.
