Makumbe is giving Nigel Chanakira in his on-going wrangle for control of
Kingdom Financial Holdings Ltd (KFHL).
President Robert Mugabe at the weekend insinuated that the battle-weary KFHL
founder and ex-chief executive could repossess his bank, and Meikles Africa
shareholders their money later, under the controversial Indigenisation Law.
"Chanakira is a banker and businessman," Makumbe told the Daily News in an
exclusive interview. "He knows how business is run. He must not be fooled
by Mugabe and the Indigenisation Law.
"This law is ruinous and dangerous for business. This is not the way
Chanakira should regain his bank. Today he can benefit from Mugabe, but
tomorrow the same Mugabe will come and take away the same bank, that's how
Zanu PF operates,"
He said Mugabe was politicking and Chanakira should resist the temptation to
benefit from his posturing, which he said was not new in the veteran former
guerilla's modus operandi.
"Involving politicians to settle disputes is not the way business is done.
The matter is between Chanakira and Meikles Africa shareholders. Chanakira
should instead find ways of settling this dispute," said Makumbe.
"Chanakira must not be fooled by Mugabe. The whole thing kills of the
economy. Political interference drives away investors and that's the last
thing Zimbabwe needs at the moment."
Mugabe at the weekend said Meikles is obliged to sell its 42,9% stake in
KFHL to Chanakira who has the right of first refusal, in terms of
empowerment laws.
"We have said ownership should be 51% local, and 49% foreign," Mugabe said.
"We should not be afraid to take what is ours. If it is in South Africa then
foreign rules would apply," Mugabe was quoted saying at the weekend.
Analysts said that Mugabe took encouragement from both Finance Minister
Tendai Biti and central bank chief Gideon Gono, who gave the two feuding
companies an ultimatum to resolve the simmering dispute.
Both Biti and Gono said last month they had had "enough of this nonsense",
referring to the raging saga which is centred on the outstanding balance
that Chanakira must pay Meikles Africa shareholders to regain control of
KFHL, whose flagship is Kingdom Bank.
Chanakira is struggling to pay off the conglomerate US$22,5 million to pave
way for his firm's de-merger from the group.
Had Chanakira, who had been given up to August 5 by Meikles Africa
shareholders to pay off the money, succeeded, he would have snapped up a
43,9 % stake to re-gain control of KFHL.
KFHL merged with Meikles Africa in 2008 to become Kingdom Meikles Africa Ltd
(KMAL) in a deal that raised prospects of the financial concern listing on
the Wall Street's elite bourse, the New York Stock Exchange.
The new conglomerate included TM Stores, Meikles Hotel, Meikles Stores,
Tanganda, Cotton Printers and Kingdom Bank and its subsidiaries.
However, what had promised to be a new era for KMAL turned into horror as
disputes emerged which led to an acrimonious divorce between the two merged
entities.
In the meantime, the Meikles board has given a thumbs up to the KFHL
demerger from the group.
An Extra-ordinary General Meeting (EGM) has been slated for October 4.
At the EGM, the shareholders will decide what to do with KFHL once the
demerger has been consummated.
Legally, the Meikles shareholders, who hold both shares in Meikles Africa
Limited and KFHL, cannot be bullied and have the prerogative of deciding who
should invest in the latter once an investor - who might not be Chanakira -
is found.
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