saviour kasukuwere 15.11.10.jpgGovernment says foreign owned companies cannot dictate how the shares ceded to locals should be allocated as this remains the prerogative of the National Indigenisation and Economic Empowerment Board (NIEEB).

While most foreign owned mining firms have realised that there is no going back on the indigenisation programme, there has been reports that some are submitting provisional implementation plans that articulate their desire to incorporate favoured partners in the indigenisation process.

Responding to the latest development, the Minister of Youth Development, Indigenisation and Economic Empowerment, Cde Savior Kasukuwere said while compliance level is satisfactory particularly for mining companies, there are some firms which are trying to evade the process, adding that there is no exception in the implementation of the indigenisation law.

“We have realised that in some proposals, some companies are specifying particular partners to cede shares to, this is not acceptable. That remains the prerogative of the National Indigenisation and Economic Empowerment Board,” said Cde Kasukuwere.

Turning to the numbers of the mining firms that have submitted their plans ahead of the deadline late this month, Cde Kasukuwere said 30 major firms have so far complied and his ministry is in the process of scrutinising the proposals.

“We have received favourable responses from mining firms with thirty having been submitted,” he added.

According to Statutory Instrument 34/2011, all affected mining companies are expected to submit indigenisation implementation plans within 45 days, beginning on March 25,  the date of the gazette publication.

Every mining firm is also expected to meet its minimum indigenisation and empowerment quota by disposing of a controlling interest or 51% shareholding to designated entities such as the National Indigenisation and Empowerment Fund, Zimbabwe Mining Development Company (ZMDC) and the proposed Sovereign Wealth Fund who will in turn oversee allocation of shares to prospective shareholders.