Share

Zim pressing for more disclosure by listed firms

Harare – Zimbabwe is pressing for more disclosure and transparency by listed companies in the country and will start requiring more detailed and lengthy financial statements as well as a more detailed audit report starting 2017, executives said this week.
 
Barclays, Standard Bank, Old Mutual, PPC and Tongaat Hulett are among the SA and international companies that have listed units in the country. There are also growing calls for all mining companies in Zimbabwe – among them units of Impala Platinum, Sibanye Gold, Anglo Platinum and Asa Resources – to list on the Zimbabwe Stock Exchange.
 
“We are going to start being required to have longer audit reports in the financial statements and this longer version will detail audit issues that would have occupied the auditors and the company,” said Samuel Matsekete, chief finance officer at Barclays Zimbabwe.
 
There is growing sentiment that audit reports by Zimbabwean companies do not provide detail on the status of a company’s position. Critics say there are companies, especially in banking in Zimbabwe, that have gone on to collapse less than a month after audit reports said the companies were “sound as a going concern”.

READ: Zim deploys police amid economic shutdown

The Zimbabwean Securities Commission is now tightening these loopholes as the country presses for more detailed disclosure frameworks and policies. Corporate governance experts in Zimbabwe said on Wednesday that current policies were lax.
 
“We would like to see tighter policies and regulations on disclosure and transparency as well as regarding public issues such as directors’ fees, remuneration and bonuses. For example, companies can sometimes publish only an abridged version of their financials, but stakeholders require more detailed information,” said another finance director.
 
Zimbabwe has suffered numerous bank collapses over the past few years, with finance institutions such as ZABG, Trust, AfrAsia Bank and others closing. Most of the bank closures have been blamed on corporate governance violations and insider loans that had not been paid back.
 
Central bank chiefs as well as other bank executives in Zimbabwe, however, say the banking sector is for now safe and sound, pointing to vibrant monitoring mechanisms put in place by the reserve bank.

Under new financial sector regulations bank executives in Zimbabwe now also face lengthy jail terms if it is discovered to have acted irresponsibly in the event of bank failures.

“The new policy positions on disclosure and accountability will help in giving more information to stakeholders and other interested parties,” said Matsekete.

ALSO READ: Zim shutdown much ado about nothing - economist

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
18.89
+0.2%
Rand - Pound
23.83
+0.3%
Rand - Euro
20.36
+0.3%
Rand - Aus dollar
12.31
+0.3%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
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