A minority shareholder in RioZim Limited has called for urgent intervention to rescue the struggling mining group, warning that years of operational decline and governance concerns have pushed the once-prominent company to the edge of collapse.
In a strongly worded statement, Engineer Jacob Kudzayi Mutisi said he supported a High Court application filed by fellow shareholder Tendai Rwodzi seeking to place RioZim under corporate rescue proceedings.
The application, filed under Case No. HCHC282/26, reportedly seeks the appointment of corporate rescue practitioner Knowledge Hofisi to oversee efforts aimed at stabilising the mining company and restructuring its operations.
Mutisi said many minority shareholders had watched their investments deteriorate over the years as RioZim’s mines fell into inactivity, debts accumulated and the company’s financial position worsened.
Once associated with global mining giant Rio Tinto, RioZim was previously regarded as one of Zimbabwe’s leading diversified mining companies, with interests in gold, diamonds, nickel, chrome and the Sengwa coal project.
However, Mutisi said many of the company’s operations are now either idle or under care and maintenance while auditors continue warning about the group’s ability to remain a going concern.
According to the statement, RioZim had reportedly recorded negative equity exceeding ZiG 1.196 billion by June 2025, leaving the company technically insolvent.
Mutisi also pointed to the deaths of businessman Harpal Singh Randhawa and his son in a 2023 plane crash as a major setback for the company. The Randhawa family is understood to control approximately 84 percent of RioZim through various entities.
While acknowledging the family’s right to its controlling stake, Mutisi argued that concentrated ownership had increasingly undermined minority shareholder interests and weakened corporate governance standards.
The shareholder listed several concerns, including alleged disposal of strategic assets without adequate shareholder approval, mounting debts owed to institutions such as Zimbabwe Revenue Authority and ZETDC, as well as failures to issue timely cautionary statements regarding major operational setbacks.
Mutisi further criticised what he described as limited transparency around extraordinary general meeting resolutions and related-party transactions, claiming minority shareholders had been sidelined from meaningful decision-making processes.
The statement argues that corporate rescue should not be viewed as punishment for management but rather as a last opportunity to preserve the company under independent supervision.
According to Mutisi, a rescue process could allow for restructuring of RioZim’s debts, review of previous transactions, and development of a realistic recovery strategy.
He also stressed that the company’s future carries broader national significance because of RioZim’s role as a strategic mining asset and employer within Zimbabwe’s economy.
Mutisi urged shareholders, creditors and regulators to engage constructively with the rescue process while calling on the High Court to prioritise the matter in order to protect jobs and preserve value.
He concluded by calling for accountability from directors and senior management over decisions that allegedly contributed to the company’s current financial crisis.
“Our investment, our jobs, and the future of this once-great Zimbabwean company are at stake,” Mutisi said.
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