Crisis Looming As Company Takeover Kickstarts
Harare, August 23, 2011- The government has started issuing withdrawal
licences to companies that failed to comply with the controversial black
empowerment laws that analysts dismiss as legalised thievery by the
governing coalition partner, Zanu (PF).
Radio VOP has it in high authority that Harare adminstration has started
writing to a number of foreign owned companies informing them that it is in
the process of withdrawing their licences due to failure to comply with the
country’s black economic empowerment laws.
Zimplats has been given 14-days to show cause why its licence should not be
withdrawn. Mining industry sources said the same directive also applied to
Murowa Diamonds, Mimosa Mine and Duration
Gold.
The country’s Indigenisation and Empowerment Act requires foreign mining
firms to sell 51 percent direct equity to locals or the State. The
government rejected the mining companies’ proposals to sell25 percent direct
equity to locals and 26 percent to be made up of social investment credits.
Local communities, workers and management will get direct equity in foreign
mining firms and this will be taken from the 26 percent mines had wanted to
be met through social investment credits. Part of the 26 percent mining
firms wanted met through social credits will also be housed under a
sovereign wealthfund for future generations.
Officials added yesterday that the same situation was being applied to the
financial sector. The government would be formally notifying Barclays Bank
and Standard Limited on their failure to comply with the country’s BEE laws.
Saviour Kasukuwere, the minister of Indigenisation, confirmed the blitz on
non confirming foreign firms.
“It is true that we are now moving to take over these non-complying
companies. The government has talked for too long. It is now time to take
action,” said Kasukuwere. The government has indicated that banking
institutions unwilling to comply, were free to leave the country, as some of
them were “behaving like estranged women” by refusing to lend money to local
companies.