News / National
Zim govt gives Barclays bank, Standard Chartered 2-weeks ultimatum
19 Aug 2011 at 04:36hrs | Views
Barclays Bank, Standard Chartered, six mining companies and five other firms have been given a two-week ultimatum to submit acceptable indigenisation plans or risk losing their licences with the Government taking over ownership, 'The Herald' reported.
Mining firms affected include platinum giants Zimplats and Mimosa, gold miners Duration Gold Mine and Blanket Mine and Murowa Diamonds.
British American Tobacco, infant foods manufacturer Nestle Zimbabwe and cotton processor Cargil Zimbabwe are also affected.
Letters signed by Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere gave the companies two weeks to comply or risk losing their licences.
Some of the letters were dated July 28 and this week ministry officials said they were still awaiting responses from the affected companies.
The affected companies were re-quired by law under the General Notice 114/2011 to submit indigenisation plans detailing how they inte-nd to meet 51 percent direct equity participation by locals within five years.
If the companies fail to rectify their non-compliance, the minister is empowered under the Indigenisation Act to institute proceedings to cancel their licences.
In the case of mining firms, this will be done through the Ministry of Mines and Mining Development while the Reserve Bank is responsible for licensing financial institutions.
An official in the ministry's legal division said if the firms fail to submit compliant indigenisation plans, moves would be taken to cancel their licences and the State would acquire them. Most of the affected companies refused to comment on their status, saying they were communicating directly with officials from the responsible ministry.
Minister Kasukuwere recently told a Confederation of Zimbabwe Industries congress that 700 foreign owned companies had submitted their Indigenisation and Empowerment proposals to the Government.
He said of these, 175 were mining companies which had previously proposed that they were only prepared to sell 26 percent direct equity to locals, while the balance adding to 51 percent would be met through social credits.
This was, however, thrown away when Minister Kasukuwere said credits could not be used to meet indigenisation thresholds.
Instead, Government wants workers and communities where these companies operate to get direct equity.
A certain portion of the equity could be held in trust under a sovereign wealth fund to benefit future generations.
Full list of the companies and deadlines:
Affected companies Deadline
Standard Chartered Bank 14 days
Murowa Diamonds (Pvt) Ltd 14 days
Pan American Mining (Pvt) Ltd 14 days
Zimplats 14 days
Blanket Mine 7 days
Barclays Bank Zimbabwe Ltd 14 days
Mimosa Holdings 14 days
Duration Gold Mine 14 days
British American Tobacco 7 days
Nestle 14 days
Cargil Zimbabwe (Pvt) Ltd 14 days
Mining firms affected include platinum giants Zimplats and Mimosa, gold miners Duration Gold Mine and Blanket Mine and Murowa Diamonds.
British American Tobacco, infant foods manufacturer Nestle Zimbabwe and cotton processor Cargil Zimbabwe are also affected.
Letters signed by Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere gave the companies two weeks to comply or risk losing their licences.
Some of the letters were dated July 28 and this week ministry officials said they were still awaiting responses from the affected companies.
The affected companies were re-quired by law under the General Notice 114/2011 to submit indigenisation plans detailing how they inte-nd to meet 51 percent direct equity participation by locals within five years.
If the companies fail to rectify their non-compliance, the minister is empowered under the Indigenisation Act to institute proceedings to cancel their licences.
In the case of mining firms, this will be done through the Ministry of Mines and Mining Development while the Reserve Bank is responsible for licensing financial institutions.
An official in the ministry's legal division said if the firms fail to submit compliant indigenisation plans, moves would be taken to cancel their licences and the State would acquire them. Most of the affected companies refused to comment on their status, saying they were communicating directly with officials from the responsible ministry.
Minister Kasukuwere recently told a Confederation of Zimbabwe Industries congress that 700 foreign owned companies had submitted their Indigenisation and Empowerment proposals to the Government.
He said of these, 175 were mining companies which had previously proposed that they were only prepared to sell 26 percent direct equity to locals, while the balance adding to 51 percent would be met through social credits.
This was, however, thrown away when Minister Kasukuwere said credits could not be used to meet indigenisation thresholds.
Instead, Government wants workers and communities where these companies operate to get direct equity.
A certain portion of the equity could be held in trust under a sovereign wealth fund to benefit future generations.
Full list of the companies and deadlines:
Affected companies Deadline
Standard Chartered Bank 14 days
Murowa Diamonds (Pvt) Ltd 14 days
Pan American Mining (Pvt) Ltd 14 days
Zimplats 14 days
Blanket Mine 7 days
Barclays Bank Zimbabwe Ltd 14 days
Mimosa Holdings 14 days
Duration Gold Mine 14 days
British American Tobacco 7 days
Nestle 14 days
Cargil Zimbabwe (Pvt) Ltd 14 days
Source - TH
