By Itai Mushekwe
European firms, in particular British banks and some German companies in Zimbabwe are set for forced government take-over under it’s controversial indigenisation law, after being accused of perpetrating economic sabotage, Nehanda Radio has learnt.
So serious is the matter, that President Robert Mugabe’s hawkish indigenisation minister, Saviour Kasukuwere might consider issuing a Statutory Instrument to deal with the firms, which are now being seen as a “special case” amid concerns that they are rebelling against compliance and waiting for a change in government, which is fancied to revise the legislation accordingly, high level sources have said.
Government is now in exceleration mode to bulldoze its controversial indigenisation law, which was first broken by this reporter here: http://www.zwnews.com/print.cfm?ArticleID=15182 as Zanu PF vultures circle over bluechip foreign firms in a bid to loot before presidential elections slated for July this year.
It has also come to light that Harare has been angered by the European Union (EU) decision, this month not to waver all targeted sanctions against Zanu PF cronies, and therefore want a “tit for tat game”.
Mugabe as even upped the ante calling for a 100% shareholding in all foreign companies, across key economic sectors, in a major paradigm shift from the current 51%, provided by his nationalisation legislation.
Barclays and Standard Chartered banks have been singled out as the culprits, who are deliberately denying local economic players business loans for growth and capital investments. The former is in “hot soup” for allegedly downgrading it’s agriculture business unit, a move which Mugabe is thought to perceive as an attempt to foil his botched land reform exercise, black farmers and decimate food production in the country.
Indigenisation ministry sources said, the Sword of Damocles is also hovering above the head of German owned logistics industry concern DHL Zimbabwe, which Harare wants to pocket after raising up unclear “tax evasion” investigations through the National Economical Conduct Inspectorate.
DHL could be fined US$2 million for the alleged tax evasion for making offshore salary payments to some of its senior local managers, without remitting taxes among other trumped up economic misdemeanours.
“There is no political system or national system that can survive if you have an economic system that is opposed to the aspirations of the people,” warned Kasukuwere a few months at a forum hosted by the UNDP in the capital.
“Look at Barclays Bank how it has down-graded its agriculture business unit, yesterday it had branches all over the country supporting farmers with loans today they have closed everything. They control over 50% of the deposits in this country. Ask them how much are they lending to the small scale farmers. They are not interested in supporting our people.”
Standard Chartered on the other hand seems to have committed the cardinal sin of refusing to extend personal loans to Mugabe’s multiple farm owning ministers and securocrats, thereby drawing reprisals. The International financial services conglomerate, with head offices in London is the oldest financial institution in Zimbabwe after setting shop in 1892.
It has a clientele of over 200 companies and Harare is determined to reconfigure its current shareholding structure standing as thus: Standard Chartered Holdings Africa (88%), Standard Chartered Bank Zimbabwe (9%) and Standard Chartered Holdings International (3%). If the government has it’s way the new shareholding regime will see Standard Chartered Bank Zimbabwe’s shareholding surging to 51%.
DHL Corporate Communications officer, Claus Korfmacher said they are on track to meet the indigenisation of the firm and cooperating with the probe from tax authorities.
“As per rules applicable to all international companies, DHL is working closely with the concerned authorities and is on track to meet the indigenisation criteria within the stipulated time frame. As is always the case DHL is co-operating fully with the Tax authorities and is confident of resolving the matter amicably.”
Kasukuwere’s ministry is said to have come up with an intelligence assessment report of European owned companies in Zimbabwe which must be: “Nationalised, whether they like it or not, because they pose grave economic threats to recovery and stability by resisting government policy to cede their share of 51% equity to locals.”
“These British banks must pray that there is a new political dispensation without Zanu PF after this year’s presidential elections,” another source knowledgeable with the contents of the report said.
“Otherwise their days of wholesale ownership and control are numbered. Zanu PF hardliners are determined to stampede on them, as everyone makes last ditch efforts of asset stripping before Mugabe leaves the political stage.”
The intelligence report on the affected firms, will soon be presented to the Zanu PF side of cabinet, probably during politburo engagements for further deliberations and rubber-stamping as policy it has emerged.
Most senior Zanu PF ministers, including Kasukuwere are members of the politburo, which is the party’s supreme decision making body. Indigenisation is a key campaign manifesto for Zanu PF’s last re-election bid in the anticipated July polls.
Dubious Zanu PF businessman, Phillip Chiyangwa has tacitly admitted that the indigenisation drive is only benefiting his party’s top officials whom he took a swipe at for not taking ordinary Zimbabweans on board.
Some of the former ruling party figures who have become fly by night millionaires include mines minister Obert Mpofu, who now literally owns Matabeleland North, a bank despite his paltry minister salary of just over US$1000; fitness trainer cum millionaire farmer Temba Mliswa and his foe in the affirmative action movement, Supa Mandiwanzira whose wealth has seen him transform from a news reader into a media mogul with radio, cinema and newspaper businesses.