Indigenization regulations “absurd” says Zimbabwe’s parliament
http://www.monstersandcritics.com
Jun 10, 2011, 15:07 GMT
Harare – The Zimbabwean parliament declared Friday that regulations seeking
to nationalize foreign-owned companies were ‘unconstitutional, unreasonable
and absurd,’ and called for them to be repealed or revised.
The law, which would force all foreign-owned companies to cede their
majority stake to black Zimbabweans, was proposed by Youth, Indigenization
and Economic Empowerment Minister Saviour Kasukuwere.
‘We now expect the minister to come to parliament and tell us what he
(plans) to do,’ said Shepherd Mushonga, the head of a cross-party
parliamentary legal committee.
Kasukuwere was unavailable for comment.
President Robert Mugabe and Kasukuwere say the move is necessary to ensure
black Zimbabweans benefit from the country’s lucrative mineral resources.
The southern African country is rich in minerals including diamonds,
uranium, chrome, platinum and gold. The empowerment drive is targeting major
companies, including Anglo American, Rio Tinto, Implats and Nestle.
Most companies have adopted a wait-and-see attitude, putting expansion and
retooling plans on hold until there is clarity on how the empowerment plan
will be executed.
Firms that fail to disclose how they plan to transfer shares within the
stipulated period face prosecution, according to the empowerment
regulations.
‘The unanimous finding of the committee is that this statutory instrument is
both unconstitutional and ultra vires (beyond legal authority),’ reads a
report by the Mushonga-led committee.
They said the hefty penalties imposed by the law were ‘grossly
disproportionate’ to the offences, and therefore ‘inhumane and degrading.’
The imposition of prison terms for offenders was ‘unreasonable and absurd,’
the committee wrote, adding that this was unconstitutional, as it neglected
the right to the protection of the law.
Mushonga said in an interview that the regulations gave the minister of
indigenization ‘too much’ power, as they allowed him to impose a penalty on
businesses which is supposed to be administered by parliament.
Veritas, a legal monitoring organization, said that the regulations could be
challenged in the Supreme Court if Mugabe did not repeal them.
to nationalize foreign-owned companies were ‘unconstitutional, unreasonable
and absurd,’ and called for them to be repealed or revised.
majority stake to black Zimbabweans, was proposed by Youth, Indigenization
and Economic Empowerment Minister Saviour Kasukuwere.
(plans) to do,’ said Shepherd Mushonga, the head of a cross-party
parliamentary legal committee.
black Zimbabweans benefit from the country’s lucrative mineral resources.
uranium, chrome, platinum and gold. The empowerment drive is targeting major
companies, including Anglo American, Rio Tinto, Implats and Nestle.
retooling plans on hold until there is clarity on how the empowerment plan
will be executed.
stipulated period face prosecution, according to the empowerment
regulations.
both unconstitutional and ultra vires (beyond legal authority),’ reads a
report by the Mushonga-led committee.
disproportionate’ to the offences, and therefore ‘inhumane and degrading.’
the committee wrote, adding that this was unconstitutional, as it neglected
the right to the protection of the law.
indigenization ‘too much’ power, as they allowed him to impose a penalty on
businesses which is supposed to be administered by parliament.
challenged in the Supreme Court if Mugabe did not repeal them.