Commercial Farmers' Union of Zimbabwe

Commercial Farmers' Union of Zimbabwe

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Mnangagwa’s threats on foreign owned companies unlawful – Ncube

Mnangangwa’s Threats On Foreign Owned Companies Unlawful – Ncube

18/01/2011 09:38:00

Harare, January 18, 2011 – Industry and Trade Minister Welshman Ncube has
described as unlawful comments by Defence Minister Emmerson Mnangagwa at the
weekend in which he warned foreign- owned companies that they will be forced
to reveal their stance on sanctions on Zimbabwe or risk losing 90′ ‘per
cent’ of their shares.

Mnangangwa told a Zanu (PF) gathering at the weekend in Gweru that the CEOs
will have to be arraigned live on radio and declare their allegiance or risk
losing 90 percent of their shares which will be subsequently sold and used
to fight sanctions on Zimbabwe.

“If he said that, it’s an unlawful statement contrary to the constitution of
Zimbabwe. It’s an unfortunate statement, I hope he didn’t say it, the
inclusive government will not allow this,” said Ncube who is also the newly
elected president of the smaller faction of the Movement of Democratic
Change (MDC).

“If it was Zanu (PF) alone in government then it will have happened but it
is an inclusive government and we will not agree to personal opinions.”

He added that the statements are suggesting that, “we are an unlawful
government that accepts unlawful things. It is self evident that the
statements will undermine the efforts to create a stable economic
environment and attract investors.”

Mnangawa, a presidential aspirant, said his Zanu (PF) party will be rounding
up CEOs of foreign companies and parade them on national media to state
their positions on sanctions.

Zimbabwe has in the past meddled in the running of foreign businesses. In
2009 international beverages giant Nestle was forced to buy milk produced at
President Robert Mugabe’s Gushungo farm despite raising concerns on its

Ncube was forced to mediate in the matter after the company had closed down
operations for a few weeks. The government is currently in the process of
fine tuning an indigenisation legislation which seeks to compel all foreign
owned firms with a capital outlay of $ 500 000 and above to cede 51 percent
of its shares to foreign owned businesses.

There are about 500 foreign owned companies still operating in Zimbabwe
despite threats of takeover.


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