Non-compliant firms to be prosecuted effective Jan 1, 2014

Companies who have not yet obtained an indigenisation compliance certificate will with effect from January 1, 2014 be guilty of an offence, Indigenisation minister Saviour Kasukuwere has said.

Giving oral evidence before a Thematic Committee on Indigenisation and Economic Empowerment this morning, Kasukuwere said non-compliant firms will be guilty of an offence and liable to a fine not exceeding level four or to imprisonment for a period not exceeding three months or to both imprisonment and a fine.

He said his ministry has to date received and processed 1 230 indigenisation applications from non-indigenous companies operating in the country.

"More businesses continue to apply for indigenisation, particularly new investments and those businesses, which had not responded to the legal requirements before."

In terms of sectors, 579 mining companies had their applications processed representing 47%, 11  Energy companies (1%), 42 Transport applications (3%) Services 27 representing 2%, Property 44 companies (4%), Retail 19 (2%) Agriculture 2 companies, Manufacturing 420 (34%) Finance 15 (1%), construction 45 (4%), Communication 21 (2%) and Tourism 5 companies.

In the Finance services sector, six plans had been approved; four had been rejected while five were pending. Kasukuwere said considerable progress had been made with the international banks which were now showing a willingness to comply with the law.

"Standard Chartered and Tongaat Hullet have however displayed a non-cooperative attitude."

Kasukuwere noted that implementing the indigenisation plans were a process rather than event.

"For instance there are a number of companies particularly those listed and those with numerous shareholders who have delayed due to corporate procedures and other regulatory requirements."