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(TALKZIMBABWE) Indigenisation: 137 firms refuse to comply

Indigenisation: 137 firms refuse to comply
Posted by By Our reporter at 30 September, at 01 : 59 AM

AT least 137 mining firms risk losing operating licences for refusing to comply with indigenisation regulations. Firms likely to be affected if they do not comply in the next 14 days include Murowa Diamonds, Metallon Gold, and Anglo-American.

Youth, Indigenisation and Empowerment Minister Saviour Kasukuwere (pictured left above) yesterday said 38 mining companies have complied while others have agreed to the indigenisation framework. Kasukuwere said discussions were underway with some of the companies hoping that a common ground would be reached in the next 14 days. He, however, said defiant companies will face the full wrath of the law.

The Indigenisation and Economic Empowerment Act requires foreign-held companies with an annual turnover of US$500,000 or over to transfer 51 percent of their shares to indigenous Zimbabweans.

“The companies that defied the law are not that significant in being key players,” said Kasukuwere.

He added: “What we are doing now is to write to the Minister of Mines and Mining Development (Obert Mpofu) (pictured right above) in terms of the law because we are following the laws of the land and those companies that are not in compliance with the law will be dealt with accordingly.

“But these companies, to an extent, are probably one-man or two-men operators just trying to find excuses for defying the law.

“We are happy that the bulk of companies in the country are engaging with us,” he said.

Kasukuwere said it was pleasing that most big mining firms met deadlines set by the Government.

“In the mining sector, we have nearly 200 companies but the key ones are only 15.

“I am pleased to say major mining firms in the country have largely adhered to the deadline we have set. These include Zimplats, River Ranch and Kwekwe Consolidated,” he said.

In line with the indigenisation regulations, Kasukuwere said on October 7 Government will start implementing the law, starting with community-based trusts.

He said the implementation of the regulations will start with Zimplats and cascade to other mines countrywide.

Kasukuwere said community trusts were designed to ensure broad-based empowerment of ordinary Zimbabweans.

He said such a move would redefine the indigenisation law, clearing misconceptions that it was only going to benefit a few elite that were well connected.

Kasukuwere said Government was having challenges with some banks that were reneging on some of their commitments.

He said these included Standard Chartered Bank, Barclays and Stanbic.

Labels: INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), SAVIOUR KASUKUWERE

posted by MrK @ 1:26 PM