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Crisis meeting over RTG alleged takeover plot
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Directors and senior executives from the National Social Security Authority (NSSA) and Rainbow Tourism Group (RTG) are set to meet today in an urgent bid to address a suspected plot to manipulate the hospitality giant's share price for a takeover.
According to sources within the Public Service, Labour, and Social Welfare Ministry, the meeting will include NSSA and RTG board members, as concerns grow over alleged efforts to devalue RTG's stock to facilitate a cheap acquisition.
"There is a meeting set for today between NSSA and RTG directors and executives to discuss the clandestine bid to take over the tourism company at an undervalued price through manipulation of its internal issues, processes, and stock market dynamics," a ministry official revealed.
At the center of the storm is NSSA chairman Emmanuel Fundira, whose alleged bid to acquire a controlling stake in RTG has triggered intervention from authorities. Reports indicate that Fundira, in collaboration with former RTG executive Paula January and business associates, has been working to destabilize the company to drive down its share value.
Public Service Minister Edgar Moyo has confirmed he is closely monitoring the developments. "We are watching very closely, but we don't want to micro-manage the situation. We are checking what is going on and getting information from the board," Moyo told The NewsHawks.
Fundira has been accused of supplying confidential RTG payroll and remuneration details to January, which were then allegedly used to instigate an anti-corruption probe against the company's executives. The Zimbabwe Anti-Corruption Commission (ZACC) has since launched an investigation into RTG over alleged financial irregularities, including salary structures, gratuities, and allowances.
Fundira, a key player in Zimbabwe's tourism industry, is also facing scrutiny over a possible conflict of interest. As a former chairman of African Sun, RTG's competitor, and a prominent safari operator, he had signed an agreement barring him from engaging in NSSA's tourism interests. However, leaked audio recordings reportedly suggest that he has been actively involved in RTG affairs in violation of this agreement.
NSSA, the majority shareholder in RTG with a 91.6% stake, is in the process of offloading 56% of its shares. ZHL Capital, part of ZimRe Holdings, has been assigned as its financial advisor in the transaction. However, concerns have emerged that Fundira and his associates have been using insider information to position themselves ahead of the planned disposal.
The unfolding crisis has also affected RTG's expansion plans, including the acquisition of Montclaire Hotel in Nyanga. Sources indicate that NSSA, through its subsidiary National Building Society, has been stalling financing for the deal, raising further speculation about internal power struggles.
The NSSA-RTG meeting is expected to address these tensions, with authorities seeking to prevent the alleged corporate raiding scheme. The outcome of the discussions could determine the future of RTG's leadership and the integrity of Zimbabwe's corporate governance landscape.
According to sources within the Public Service, Labour, and Social Welfare Ministry, the meeting will include NSSA and RTG board members, as concerns grow over alleged efforts to devalue RTG's stock to facilitate a cheap acquisition.
"There is a meeting set for today between NSSA and RTG directors and executives to discuss the clandestine bid to take over the tourism company at an undervalued price through manipulation of its internal issues, processes, and stock market dynamics," a ministry official revealed.
At the center of the storm is NSSA chairman Emmanuel Fundira, whose alleged bid to acquire a controlling stake in RTG has triggered intervention from authorities. Reports indicate that Fundira, in collaboration with former RTG executive Paula January and business associates, has been working to destabilize the company to drive down its share value.
Public Service Minister Edgar Moyo has confirmed he is closely monitoring the developments. "We are watching very closely, but we don't want to micro-manage the situation. We are checking what is going on and getting information from the board," Moyo told The NewsHawks.
Fundira has been accused of supplying confidential RTG payroll and remuneration details to January, which were then allegedly used to instigate an anti-corruption probe against the company's executives. The Zimbabwe Anti-Corruption Commission (ZACC) has since launched an investigation into RTG over alleged financial irregularities, including salary structures, gratuities, and allowances.
Fundira, a key player in Zimbabwe's tourism industry, is also facing scrutiny over a possible conflict of interest. As a former chairman of African Sun, RTG's competitor, and a prominent safari operator, he had signed an agreement barring him from engaging in NSSA's tourism interests. However, leaked audio recordings reportedly suggest that he has been actively involved in RTG affairs in violation of this agreement.
NSSA, the majority shareholder in RTG with a 91.6% stake, is in the process of offloading 56% of its shares. ZHL Capital, part of ZimRe Holdings, has been assigned as its financial advisor in the transaction. However, concerns have emerged that Fundira and his associates have been using insider information to position themselves ahead of the planned disposal.
The unfolding crisis has also affected RTG's expansion plans, including the acquisition of Montclaire Hotel in Nyanga. Sources indicate that NSSA, through its subsidiary National Building Society, has been stalling financing for the deal, raising further speculation about internal power struggles.
The NSSA-RTG meeting is expected to address these tensions, with authorities seeking to prevent the alleged corporate raiding scheme. The outcome of the discussions could determine the future of RTG's leadership and the integrity of Zimbabwe's corporate governance landscape.
Source - online
