Despite hopes for a revival among workers, the report’s findings cast a shadow over their prospects, revealing a complex web of issues that have plagued the mine since its closure in November 2022.
Owned by Duration Gold and its subsidiary Forbes and Thompson (Pvt) Ltd, Vubachikwe Gold Mine faces significant debt, totaling over US$8.5 million and ZWL 3.5 billion as of November 2023. The report highlights a lack of clear debt repayment strategies, with debts mounting at a monthly rate of approximately US$250,000.
The forensic investigation, spanning from January 2022 to November 2023, reveals a series of irregularities within Forbes and Thompson (Pvt) Ltd and its associated companies in Zimbabwe. Major shareholder and Managing Director Allan Brent Dolan faces allegations of irresponsible spending, including extensive travel expenses and engaging in risky financial ventures unrelated to the mine’s operations.
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Workers’ discontent stemmed from unpaid wages and poor working conditions, leading to a strike in April 2022. Despite promises of improvement, essential service employees received only minimal stipends and food hampers, exacerbating their financial hardship.
Dolan’s involvement in unrelated projects, such as Exclusive Prospecting Orders (EPOs), diverts crucial funds from the mine’s operations, affecting not only employee salaries but also payments to essential services like electricity. The report also exposes non-compliance with tax obligations, further complicating the financial situation.
These revelations cast doubt on the feasibility of reopening Vubachikwe Gold Mine, raising questions about the sincerity of the effort amid ongoing financial turmoil. Despite its potential to contribute to local employment and economic growth, the mine’s reopening hinges on resolving these pressing financial and managerial issues.
