Confusion over ‘suspension’ of indigenisation regulations
By Violet Gonda
14 April 2010
Confusion surrounds the status of the ‘indigenisation’ law as a result of conflicting statements issued by the political parties in government.
The Prime Minister’s Office has said the implementation of the controversial law has been suspended and that cabinet agreed on Tuesday that this policy was ‘null and void,’ pending a review of the process and further
consultations.
However the man in charge of the regulations, Indigenisation Minister Saviour Kasukuwere told SW Radio Africa on Wednesday that the policy was irreversible.
He is also quoted on the New Zimbabwe website denying the ‘suspension’ plans. “How do you do that (reverse the regulations)?” he asked. “It sounds like gossip, more than anything.”
The Minister was also quoted by the Zimbabwe Guardian saying; “The law is still in force and companies have to comply in line with the regulations issued. The first deadline is set for Thursday this week (tomorrow) and is
still in force.” He then added, “Nothing of that sort happened in yesterday’s Cabinet seating. The law is still operational, valid and in effect. There was no such discussion in Cabinet.”But the same Minister is quoted by the news agency Associated Press saying the law has been delayed for discussions with business leaders: “There are consultations which must be made with various sectors and this is why the Act has been set aside.”When asked about these conflicting statements Kasukuwere told SW Radio Africa: “Oh well, you have to look at the people you are giving interviews to and you tell them what they want to hear. But this is an irreversible
process.”The Minister said he would not comment any further after that.
A source in the Prime Minister’s office maintains that ZANU PF tried to force the regulations through during the cabinet meeting on Tuesday, which was attended by the President and the Prime Minister, but in the end it was declared ‘null and void.’ The source also said indigenisation will go ahead, but that there is going to be an ‘amended policy which will be similar to South Africa’s policy of black economic empowerment.’
Economist Tony Hawkins said the conflicting statements expose a deeply divided government: “This illustrates very vividly the problems that the coalition government is having. It typifies the problem and demonstrates to
all and sundry that Zimbabwe is in this kind of situation and that no one seems to be in control.”
“Of course it’s the economy, the business community and the 80 percent unemployed living in poverty etc who are the victims of this unsatisfactory situation,” Hawkins said.
The Indigenisation and Empowerment Regulations law which came into force on March 1st require companies to hand over at least 51 per cent ownership to ‘indigenous’ Zimbabweans over the next five years, and the deadline for businesses to submit handover proposals was set for April 15th.
The government has yet to issue an official statement about the status of this law.