AAG vows to force foreign firms to comply

By Our Correspondent

HARARE – The Affirmative Action Group (AAG) has issued an ominous warning to foreign companies opposed to the controversial indigenization law , saying that the organization will assist the government to ensure compliance with the new legislation.

The law prescribes that foreign companies cede 51 percent of their stake to black Zimbabweans.

The indigenization lobbying group also rebuked Prime Minister Morgan Tsvangirai who last week declared as null and void what he described as the unilateral application of the law by President Robert Mugabe’s Zanu- PF
party.

“The law is law now, and any companies that do not abide by the law will be dealt with accordingly,” AAG secretary-general Tafadzwa Musarara told journalists in Harare Monday.

“AAG is the vanguard of broad-based black economic empowerment. We shall help the ministry to police where possible.

“The doctrine of clean hands is clear at law; you comply first then you go and complain. Until such a time when the minister shall rescind it or the courts shall see fit to overturn it, the law is operational.”

Saviour Kasukuwere’s Ministry of Youth Development, Indigenization and Empowerment published the new Economic Empowerment (General) Regulations of 2010, dated January 29, and spelling out the country’s indigenization policy.

The regulations are set to take effect shortly on March 1.

The gazetting of the regulations immediately sparked a fresh dispute within the country’s inclusive government. Tsvangirai said the regulations were published without due process as detailed in the constitution.

He said the law was short-sighted and destructive as it would scare away potential investors who were willing to give the inclusive government the benefit of doubt.

The MDC views the law as too harsh for a country that still needs to attract foreign investment and recover from a decade long unprecedented economic recession.

The MDC blames the collapse of the economy on what it describes as Zanu-PF’s populist policies.

“We are perturbed now by certain voices coming from different political formations that seek to shoot down this Act without necessarily providing a counter proposal,” said Musarara.

Musarara was adamant foreign investors were reluctant to come and set up businesses in Zimbabwe because of Western-imposed sanctions alleged by Zanu-PF to have been invited on the country by the MDC.

“Investors have not shied away because of this law but (because of) sanctions,” said Musarara. “We have had sanctions affecting us for the last 10 years; that affected key institutions like the banking sector, the Grain
Marketing Board and influential leaders to fully execute the duties that they are expected to.”

The AAG, which threatened to seize milk processing company, Nestle, after the company terminated a milk procurement contract with Gushungo Dairy Farm, denied it was an appendage of Zanu-PF.  The farm is owned by President Mugabe and his family.

Musarara said it was a mere coincidence that the AAG articulated the same views as Zanu-PF.

Speaking at the same occasion, AAG vice president Themba Mliswa said the business people who stood to be affected by the law should not be misled by politicians.

“The law has nothing to do with which side you are on politically,” said Mliswa. “As Zimbabweans, we must abide by the law. I think it’s better for people to comply with the law and follow the due process.

“The law said white farmers must go and white farmer went and more white farmers are still going.”

The Indigenization and Economic Empowerment Act was passed by the previous Parliament when Zanu-PF enjoyed the two thirds majority required for a law to be enacted