In a shocking and ill advised move the Government of Zimbabwe froze assets of four companies linked to the Meikles family and commenced investigations into what appears to be fabricated allegations of externalizing foreign currency leveled against the entities and Mr John Moxon.This is a disaster for a country that is trying to attract foreign investment. Recently the Prime Minister was in London where he was calling on all Zimbabwean exiles to return and invest. After this asset seizure it is now clear that Zimbabwe remains a high risk investment destination and investors could easily lose serious amounts of money.
This action must be condemned in the strongest terms as it pushes the country back wards. Zimbabwe is supposed to be progressively attracting fresh investors whilst protecting those already in such as Meikles ,Moxon and others whose assets have been controversially taken on the flimsiest of excuses.
Meikles Hotel is a world renowned hotel which attracts visitors and tourists from all over the world. It was expected to reap huge benefits from the World Cup 2010 in South Africa. However this illegal seizure and specification just a few months ahead of the World Cup means the Hotel and the country will lose revenue as many visitors may shun the facility. This is bad for Zimbabwe and bad for employees and will result in further suffering for
Home Affairs Co-Ministers Kembo Mohadi and Giles Mutsekwa appointed Messrs Budhama Chikamhi and Cleopas Mukungunugwa as investigators of Mitchell and the specified companies.It is totally unbelievable that an MDC Minister would find it acceptable and normal to legitimize such a blatant asset grab process when Zimbabweans are expecting MDC to curb ZANU PF’s high propensity to abuse the law and ignore property rights which has turned Zimbabwe into a lawless jungle especially on asset grab and seizures by the a few individuals who have high jacked state institutions. This is wrong and must be stopped if the country is to develop and prosper. Zimbabwe desperately needs companies like Meikles to be flourishing under their rightful owners and this will attract foreign investors.
According to an Extraordinary Government Gazette published last Friday, listed Kingdom Meikles, Tanganda Tea Company (Private) Limited, Thomas Meikles Centre (Private) Limited and Murlis Investments (Private) Limited were listed as specified companies. This means now the Companies and concerned individuals can not spend more than $ 100 without permission from the “Investigator”. Effectively this passes control of the business to the Government as it now has power to appoint the Administrator who will work according to instructions from Government and not from the right full owners of the Business. This effectively kills the business.
GMRI Capital has already conformed that the various Meikles units affected by this speciation action are now struggling to maintain the Banking facilities and cant access credit. Investors are jittery as they are not sure what action to follow due to this move which is totally against what the Government has been saying about safety of investing in Zimbabwe.
Kingdom Meikles managing director Andrew Lane-Mitchell was also specified in his personal capacity in terms of Section 6 of the Prevention of Corruption Act .The appointments were made in terms of Section 7 of the Act. Whilst it appears the law is being followed by the various quotes of Acts being used this is a clear case of a state that has been hijacked by organized criminals who masquerade as Government. This is an action which will not benefit the country but it will benefit a few individuals who may find themselves under targeted sanctions and will find it hard to do business outside Zimbabwe and Africa.
This is just the latest in a long on going series of asset seizures that began with the seizure of Century/CFX Bank from ENG Capital,sezuire of SMM Mines from Mutumwa Mawere,seizure of Trust Bank,Barbcan Bank,Royal Bank,Kondozi Farm.The methos is the same the rightful owners of the business are specified,scandalized,criminalzied whilst their assets are taken over in the name of fighting corruption.This is what has ruined Zimbabwe's entreprenurial spirit and ruined the Economy.
This action of seizing a long established and legitimate business sends the wrong signal to the international community. These are the actions which result in economic decline loss of jobs and loss of production as investors are scared to make fresh investments which create jobs. These are the actions that hurt the Economy even though some try to blame sanctions when its clear the Government itself is putting illegal sanctions against its own people and own investors. Charity begins at home.
This article appears courtsey of GMRI CAPITAL - www.gmricapital.com
Gilbert Muponda is a Founder of GMRI CAPITAL . He can be reached at; www.ZimFace.com
Email: gilbert@gilbertmuponda.com . Skype ID: gilbert.Muponda
Twitter ; http://twitter.com/gmricapital
Phone: 1-416-841-5542
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