RIO Limited Group of Companies (RioZim) this week vowed not to give in to a "malicious and misguided petition" authored by a union pushing for the expulsion of executives at Renco Mine over graft allegations.
Renco, a gold mining asset, is one of the Zimbabwe Stock Exchange listed RioZim’s units.
Reacting to calls by the Zimbabwe Dia mond and Allied Minerals Workers Union (Zdawu) to push out managers suspected of what it claimed to be the theft of gold, RioZim said it reserved the right to hire and fire its managers.
Zdawu had demanded a probe into the financial affairs of Renco Mine.
“A petition was recently handed over to the company purported to have originated from the employees seeking to have the company remove Renco Mine management, alleging allegations of mismanagement and theft with the support of a union that has 176 members out of the 1 100 workforce at the mine," RioZim spokesperson Wilson Gwatiringa told the Zimbabwe Independent.
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“It is clear that this union is canvassing for members by supporting employees to rise against management, an act which is disruptive and does not benefit the employees in any way.
“Renco Mine management has the full support of its executive and board, the company will not yield to the malicious and misguided petition against management as it is not the mandate of employees or any union to hire and fire managers."
Renco Mine workers wrote to RioZim shareholders on November 5, demanding the resignation of the concerned executives.
"We suspect foul play and theft of gold," the workers wrote.
RioZim controls some of the country’s best mines, including Cam & Motor Mine, Renco Mine, Empress Nickel Refinery, Murowa Diamonds and Dalny Mine.
The plunder of precious minerals like gold and diamonds is a topical issue in Zimbabwe.
But it is rarely raised against formal mining firms like RioZim.