Share

Zim parliament slams indigenisation

Harare - The Zimbabwean parliament declared on Friday that regulations seeking to nationalise foreign-owned companies were "unconstitutional, unreasonable and absurd," and called for them to be repealed or revised.

The law, which would force all foreign-owned companies to cede their majority stake to black Zimbabweans, was proposed by Youth, Indigenisation and Economic Empowerment Minister Saviour Kasukuwere.

"We now expect the minister to come to parliament and tell us what he (plans) to do," said Shepherd Mushonga, the head of a cross-party parliamentary legal committee.

Kasukuwere was unavailable for comment.

President Robert Mugabe and Kasukuwere say the move is necessary to ensure black Zimbabweans benefit from the country's lucrative mineral resources.

The southern African country is rich in minerals including diamonds, uranium, chrome, platinum and gold. The empowerment drive is targeting major companies, including Anglo American [JSE:AGL], Rio Tinto, Impala Platinum Holdings [JSE:IMP] and Nestle.

Most companies have adopted a wait-and-see attitude, putting expansion and retooling plans on hold until there is clarity on how the empowerment plan will be executed.

Firms that fail to disclose how they plan to transfer shares within the stipulated period face prosecution, according to the empowerment regulations.

"The unanimous finding of the committee is that this statutory instrument is both unconstitutional and ultra vires (beyond legal authority)," reads a report by the Mushonga-led committee.

They said the hefty penalties imposed by the law were "grossly disproportionate" to the offences, and therefore "inhumane and degrading""

The imposition of prison terms for offenders was "unreasonable and absurd," the committee wrote, adding that this was unconstitutional, as it neglected the right to the protection of the law.

Mushonga said in an interview that the regulations gave the minister of indigenization "too much" power, as they allowed him to impose a penalty on businesses which is supposed to be administered by parliament.

Veritas, a legal monitoring organisation, said that the regulations could be challenged in the Supreme Court if Mugabe did not repeal them.
 

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders