Meikles urged to address racial bias allegation

Zimbabwe government has advised Meikles Africa Limited to urgently address alleged racial bias in the appointment of its workers to executive posts in the firm.

The development comes after Meikles Africa Limited workers wrote a letter to the Ministry of Youth Development, Indigenisation and Empowerment, Saviour Kasukuwere, asking him to intervene to correct alleged racist decisions within the group.

Only a single black person is the only black executive director in a Meikles board that has a total of seven executive directors.

Executive directors are high-ranking people employed by a company and they participate or have authority to make strategic and binding decisions on a firm.

Meikles workers also revealed that they were concerned with alleged unfair termination of contracts for some top black managers.

The Minister of Youth Development, Indigenisation and Empowerment, Cde Saviour Kasukuwere told ZBC News that the government has directed Meikles Africa Limited Board Chairman, Mr John Moxon to solve the alleged racial bias.

The Moxon family holds 43% stake in the dually listed business conglomerate.

"We have told them to solve the racial bias and we will soon monitor their progress," said Cde Kasukuwere.

Two weeks ago, Meikles Africa Limited informed its shareholders that the group is introducing a restructuring plan  in a move market watchers believe is an attempt to solve the alleged racial irregularities.

However, Minister Kasukuwere said Meikles has also been advised to give 10% of its shares to workers.

"We have also told them that they should comply with the employee share ownership scheme for the benefit of black employees," he added.

Questions have been raised by investors of the group on why Meikles continue to appoint white executive directors whenever a position held by a white executive director becomes vacant yet there are competent black non executive directors in the group's subsidiaries.