Zimbabwe Stock Exchange chairman quits

ZIMBABWE Stock Exchange interim board chairman Mr Sijabuliso Biyam has resigned under what we would term unclear circumstances. Mr Biyam was appointed interim chairman in March this year as Finance Minister Tendai Biti sought to quell endless differences between ZSE and the Securities Commission of Zimbabwe.

SECZ chairperson Mrs Willia Bonyongwe said the commission would issue a full statement after getting circumstances surrounding his resignation.

Contacted for comment, Mr Biyam confirmed but on a technicality that his board was appointed on an interim basis, implying that its term of office could have lapsed. He, however, referred further questions to Minister Biti and SEC.

Market sources have, however, indicted that Mr Biyam, who had been nominated to sit on the substantive ZSE board, had some differences with SEC over the selection criteria of board members.

ZSE chief executive Mr Emmanuel Munyukwi have also not issued any statement with regards to the new development.

The appointment of the board led by Mr Biyam came after SECZ nullified the ZSE board led by Mr Ndodana Mguquka that was appointed by the ZSE committee last year.

SEC was not happy with the appointments and demanded the removal of veteran stockbrokers Mr Seti Shumba and Mr Bart Mswaka from the board.

SEC argued that the ZSE board should be balanced and composed of independent directors.

Other board members include Mr Peter Shonhiwa, a director of Afre, Mr Munyukwi and Mr Mutasa Dzinotizei, a senior official from the Finance Ministry.

Before the interim board a committee of stockbrokers was running the ZSE.

SEC had advised the parent Ministry of Finance to restructure the ZSE which Minister Biti described as an "old boys' club".

SEC is empowered to prescribe qualifications for licensed players, register, supervise and regulate securities exchange.

Mr Biyam's premature departure comes at a time his board was set to fast track the demutualisation of the exchange to restore confidence, transparency and its financial agility.

Full demutualisation of the ZSE will enhance its financial position as a profit-oriented firm and help it explore income-generating initiatives.

Demutualisation will also enable them to pursue joint ventures, improve efficiency, widen shareholder base and have better access to capital to support various interest projects.

Thereafter, it would be flexible, quicken decision-making separate interest of users from shareholders and enable it to adopt to the fast changing technology.

After demutualisation members give up their rights and take up shares in the private company, which the former member may then trade publicly.