Financial Gazette (Harare)
Shame Makoshori
4 June 2009
Harare — GOVERNMENT has ordered the Zimbabwe Stock Exchange (ZSE) to carry out full-scale investigations into listed companies in which it has an interest, alleging that some of its shares could have changed hands unprocedurally.
Sources close to the ZSE said the investigations could lead to the reversal of deals involving government stock in certain counters.
If confirmed, this would be the second time in seven months that ZSE companies would have been caught on the wrong side of the law after the authorities suspended trade on the equities market in November last year to plug loopholes that were fueling inflation.
Last week, Emmanuel Munyukwi, the ZSE chief executive officer, directed stockbrokers to compile returns for all transactions conducted between February 19 2009 when the bourse resumed trade and Wednesday last week.
Munyukwi told stockbroking firms that listed shares belonging to the government should not be sold or transferred without the Ministry of Finance's approval.
"It has come to the attention of the Ministry of Finance that some State institutions that are custodians of listed shares belonging to the government are selling or transferring the shares without complying with provisions of Section 18 of the Audit and Exchequer Act (Chapter 22:03), which empowers the Ministry of Finance to control and manage State property including the sale and transfer of such property," Munyukwi's letter, e-mailed to stockbroking firms on May 29 2009, reads.
"If in doubt on the ownership of the shares, please contact the Zimbabwe Stock Exchange before executing the trades or registering the transfers.
"In the meantime the Zimbabwe Stock Exchange requires a return on government-owned shares, which were sold and transferred since trading resumed on 19 February 2009. Nil returns are required," Munyukwi added.
Finance Minister Tendai Biti said yesterday he had not ordered the compilation of the returns, saying any information generated by the Ministry will now be posted on its website.
"I have not given them (the ZSE) any directive," said Biti. "You will have to talk to the ZSE, there is nothing like that, we generate our own news and post on the Ministry's website," he added.
Government has a shareholding in a number of listed companies such as Ariston Holdings, Border Timbers, DZL Holdings, SeedCo, Zimpapers, CBZ Holdings, Rainbow Tourism Group, ZB Financial Holdings, Cairns, CFI and FBC Holdings.
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