Business / Companies
19 foreign-owned companies defy Zanu PF's indigenisation policy
16 Dec 2013 at 00:35hrs | Views
ZANU PF has turned the heat on 19 foreign-owned companies that have allegedly defied government policy to indigenise and called on its government side of the administration to penalise the firms.
According to a Zanu PF central committee report presented at the party's annual conference in Chinhoyi at the weekend, some major international firms had partially complied with the law resulting in successful employee and community share ownership schemes, but others had "wilfully defied it due to confusion caused by dissenting policy position during the tenure of the just-ended inclusive government formed in 2009".
Part of the report reads: "There was no significant movement in defiant companies towards compliance . . . From experience it is now known that the current law is weak with regard to compliance enforcement mechanisms.
"Because there is no means to ensure companies submit indigenisation plans or implement their approved plans, many of these companies have either chosen to remain under the radar, ignored calls for or have refused to implement indigenisation plans.
"Provisions in the Act and the General Regulations pertaining to enforcement of compliance requires strengthening. Compliance must balance punitive measures and incentives, but must be effective and discourage wilful non-compliance," the central committee said.
Under the country's empowerment laws, foreign-owned firms are obliged to sell 51% stakes to locals.
The list of defiant firms was given as South African mogul Mzi Khumalo's Metallon Gold; Duration Gold Zimbabwe; Murowa Diamonds; Tongaat Hulett; Standard Chartered Bank of Zimbabwe; Zimasco; Zimbabwe Granite International; Noral Private Limited; Barrow Properties; KW Blasting Specialists; Astiz Private Limited; Lady Anna Custom Milling; Kenilwold Investments; Cable Cast Enterprises; Plate Glass Company Zimbabwe Limited; Pioneer Hybrid Zimbabwe; Stramit Centre Africa; Illford Services and Pannar Seed.
According to a Zanu PF central committee report presented at the party's annual conference in Chinhoyi at the weekend, some major international firms had partially complied with the law resulting in successful employee and community share ownership schemes, but others had "wilfully defied it due to confusion caused by dissenting policy position during the tenure of the just-ended inclusive government formed in 2009".
Part of the report reads: "There was no significant movement in defiant companies towards compliance . . . From experience it is now known that the current law is weak with regard to compliance enforcement mechanisms.
"Because there is no means to ensure companies submit indigenisation plans or implement their approved plans, many of these companies have either chosen to remain under the radar, ignored calls for or have refused to implement indigenisation plans.
"Provisions in the Act and the General Regulations pertaining to enforcement of compliance requires strengthening. Compliance must balance punitive measures and incentives, but must be effective and discourage wilful non-compliance," the central committee said.
Under the country's empowerment laws, foreign-owned firms are obliged to sell 51% stakes to locals.
The list of defiant firms was given as South African mogul Mzi Khumalo's Metallon Gold; Duration Gold Zimbabwe; Murowa Diamonds; Tongaat Hulett; Standard Chartered Bank of Zimbabwe; Zimasco; Zimbabwe Granite International; Noral Private Limited; Barrow Properties; KW Blasting Specialists; Astiz Private Limited; Lady Anna Custom Milling; Kenilwold Investments; Cable Cast Enterprises; Plate Glass Company Zimbabwe Limited; Pioneer Hybrid Zimbabwe; Stramit Centre Africa; Illford Services and Pannar Seed.
Source - NewsDay
