ZSE completes Alban Chirume investigation

An investigation into the conduct of suspended Zimbabwe Stock Exchange (ZSE) chief executive officer (CEO), Alban Chirume, is almost complete, amid indications that the bourse could part ways with its top servant.

Chirume fell out with the ZSE’s board last month for sanctioning mobile telecommunications company Econet Wireless’ cash call to raise US$130 million to pay offshore debts, despite concerns by the listing committee.

He was consequently suspended, paving way for investigations into his conduct.

The investigations, led by lawyer, Selby Hwacha, went beyond the Econet issue, going far back as his appointment at the ZSE in July 2013.

The investigation, according to ZSE insiders, was critical of the way he handled the suspension of Meikles in February 2015, on allegations of overstating a debt it was owed by the Reserve Bank of Zimbabwe with the intention of manipulating its share price.

Meikles proceeded to file a lawsuit against the ZSE and Chirume in his personal capacity, claiming delictual damages to the tune of US$50 million for patrimonial loss plus interest and costs of the suit.

Meikles argued that the ZSE had acted outside the law and did not accord the company the right to be heard in breach of Section 3 of the Administrative Justice Act.

The bourse had filed its intention to defend the lawsuit, and had, in fact, sought exception on behalf of both the exchange and Chirume and a special plea in bar in respect of ZSE CEO. This was dismissed by the High Court.

Meikles, which threatened to de-list from the bourse after the debacle, has already started the process to do so, with plans for an offer to minorities that would pave way for the company’s exit from the ZSE.

The investigation, according to insiders, also highlighted Chirume’s alleged failure to meet targets set by the board, submitting reports to the board late and not responding to queries from the board.

It will also reveal that the ZSE’s CEO had incurred high expenditures and made several decisions without consulting the board.

ZSE chairperson, Caroline Sandura confirmed to the Financial Gazette that investigations into Chirume’s conduct were nearly complete.

“We will make available the document soon after we sit as a board and deliberate on it and the way forward. It has to be water-tight and fair at the same time, but indications from what is available at present does not paint a good picture (of him),” she said.
She said some of the issues raised by the report happened before she was appointed chairperson of the ZSE.

“Some of the issues raised happened before the current board was serving. You would appreciate you will need to fully understand the background of such issues to make an informed decision,” Sandura said.

Sandura was appointed chairperson of ZSE in February last year by Finance Minister Patrick Chinamasa. Other members of the board are Bart Mswaka, who is the deputy chairperson, Benson Gasura, Markus De Klerk, Daniel Muchena and Xolisani Moyo.

Chirume, a former Securities and Exchange Commission of Zimbabwe CEO, was appointed head of for the ZSE in July 2013. He replaced Emmanuel Manyukwi, who left after agreeing an exit package with the bourse following accusations of insubordination.

Martin Matanda is currently acting CEO of ZSE while Chirume is on suspension. Financial Gazette