Maravi

(NEWZIMBABWE) Firms submit empowerment proposals

Firms submit empowerment proposals
Posted: Friday, April 16, 2010 1:51 pm

FOREIGN-OWNED companies have rushed to submit their empowerment proposals to the Government on how they intend to comply with the gazetted indigenisation regulations, despite the confusion caused by the MDC over the policy in the last few days.

It is understood that over 100 companies have so far submitted their proposals for consideration. Prime Minister Morgan Tsvangirai's spokesman, James Maridadi, told international media on Tuesday that Cabinet had declared the regulations published by the government "null and void".

Maridadi does not speak on behalf of the government or Cabinet. The Secretary to the President and Cabinet, Misheck Sibanda, makes formal announcements regarding such matters.

The deadline for the submission of empowerment proposals was 15 April, 2010.

President Mugabe later clarified that the regualtions were still intact, but consultation was an ongoing process.

Government says the banking sector has not responded as quickly as the other sectors. They "are being unnecessarily difficult" and have not made any positive communications, says the government.

Barclays and Stanbic banks are fingered as some of the banks that has been difficult.

Standard Chartered Bank has asked for an extension for submission, which Government has reportedly granted.

FBC, MBCA and ABC Holdings have already submitted their proposals.

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Other firms that have submitted their proposals are Zimplats, Bindura Nickel, Mimosa Gold Mine, La Farge Cement, Sisk Construction, OK Zimbabwe, Delta Beverages, Econet and British American Tobacco.

All companies were supposed to have made their submissions by Wednesday.

Yesterday, Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere said: "Everything has gone well and the response has been tremendous. However, we are dismayed by the attitude of some of the banks."

Though he refused to say which banks were problematic, reliable sources fingered two institutions.

"Stanbic and Barclays have been quiet and attempts to engage them have been met with a cold response," the source said.

Director of Indigenisation and Empowerment in the ministry Mr Godfrey Sigobodhlo said yesterday that some companies had applied for an extension of the deadline to afford them more time to study the law.

"More than 100 companies have submitted their proposals and some have applied for an extension of the deadline.

"So far, the minister has only approved OK Zimbabwe’s proposal.

"The OK Zimbabwe proposal was approved on the basis of its strength on how the company seeks to restore its vibrancy and to contribute to the economy.

"Extension of the deadline is a matter for the minister’s discretion and appropriate requests must be addressed to the minister in terms of Section 4 (subsection 6) of the Indigenisation Act."

Indigenisation and Empowerment Board member and legal advisor Mr Farai Mutamangira said the gazetted regulations remained in place.

"The indigenisation regulations are of full force and effect and must be complied with.

"They have neither been suspended nor amended," he said.

Labels: INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), JAMES MARIDADI

posted by MrK @ 2:33 PM