Zhuwao backs off foreign firm closure threat

The state-controlled Herald newspaper today quoted Mangudya saying the financial sector had largely complied with the indigenization law.

“Banks are complying and we are satisfied with the level of compliance,” Mangudya was quoted saying in the Herald.

In response, Zhuwao said he had written “an extensive letter” to the central bank head, who, along with Finance Minister Patrick Chinamasa, has frequently clashed with the indigenization minister over implementation of the local ownership policy.

“Had the governor of the RBZ written to me and I would have wanted to have kept this as internal communication between the governor and myself, but unfortunately the reserve bank then sought to have this in the media and this is why you see that in the Herald of today there is communication that foreign financial institutions are compliant. I have indicated to my colleagues, and that includes the governor, that they must be careful of making pronouncements that are incorrect around indigenisation because I will correct those pronouncements publicly,” Zhuwao said.

“Because the governor has made a public pronouncement I have been forced to have to correct the governor and say the governor has misunderstood the legislation.  Those companies are not compliant and those companies have not shown any intention to comply. I indicated this as soon as I was appointed that look, should anybody make a public pronouncement around issues of indigenisation, they must be clear that they are saying the truth and that what they are saying is correct otherwise I will be forced to make a correction in public.”- The Source