Maravi

(TALKZIMBABWE) Mugabe warns industry and the financial sector

Mugabe warns industry and the financial sector
Ranganai Chidemo
Sun, 21 Dec 2008 15:36:00 +0000

President Robert Mugabe, left, and First Lady Grace Mugabe, right, greet delegates at the Zanu PF party's 10th annual Congress in Bindura, Zimbabwe, Friday, Dec. 19, 2008. (AP Photo)

PRESIDENT Mugabe has indicated that his Government will take a controlling shareholding in all foreign-owned banks and manufacturing and mining companies, leaving existing foreign owners as minority shareholders.

Speaking at the 10th Zanu PF National Annual People’s Conference in Bindura, the president, who is also the first secretary of Zanu PF said the Government will seek to control the financial sector as some players have deliberately sabotaged the country’s economic sector.

He indicated that besides the assistance and cooperation that Zimbabwe was being rendered by friends and allies in the region and abroad, there is need to come up with local solutions to ensure that the sanctions do not do maximum damage.

“There are some people in the business community, companies and banks that are working in cahoots with the country’s detractors to undo the country’s achievements in the economic sector, through sanctions,” said President Mugabe.

“There is need for a total revolution in the manufacturing and industrial sectors,” he added and said that a programme is due to take off as soon as possible.

"The financial system is not under our control. It is in the hands of our detractors. Banks such Standard Chartered and Barclays, they do the bidding of their masters abroad," President Mugabe said.

"You can tell from the irregularities they have committed over the past few months."

President Mugabe took a swipe at those critics who were calling Zimbabwe the basket-case of Africa.

He said the Zanu PG Government had earned the country the title “Breadbasket of Southern Africa” during the 1980-90s, not Ian Smith and Western sanctions had reversed the gains made by the Government in education and the health sectors.

Zimbabwe passed the Indigenization and Economic Empowerment Act in March this year.

The legislation forces foreign-owned firms to sell at least 51% of the shares of every public company and other businesses to indigenous Zimbabwean businessmen.

It further specifies that no restructuring, merger or demerger shall be approved unless indigenous Zimbabweans hold 51 percent shares in the resultant business.

All government departments, statutory bodies and local authorities and all companies are mandated to procure 51% of their services from companies whose controlling interest is held by locals.

On Saturday President Mugabe accused banking corporations and manufacturing companies of externalizing foreign currency, depriving the country of vital resources which had sent the economy into a tailspin.

He indicated that the move, coming on the heels of the Fast Track Land Reform Programme, would complete the economic empowerment of the majority blacks in the country.

The President said the land reform was irreversible.

"We will never allow regression in regard to our land policy," he said. "The biggest issue is of land. The land has already been given to the people, it will not be returned to whites."

"We don't want a unity which is retrogressive."

President Mugabe scoffed at threats of forced ouster by Western countries.

"I won't be intimidated. Even if I am threatened with beheading, I believe this and nothing will ever move me from it: Zimbabwe belongs to us, not the British," he said.

Labels: MUGABE, NATIONALISATION

posted by MrK @ 10:52 PM