Sunday, April 14, 2013

NIEEB Welcomes Stanchart Commitment to Indigenization in Zimbabwe

NIEEB welcomes Stanchart commitment to indigenisation

Sunday, 14 April 2013 00:00
Tinashe Farawo
Zimbabwe Sunday Mail

The National Indigenisation and Economic Empowerment Board (NIEEB) has commended Standard Chartered Bank for making an undertaking to comply with the country’s Indigenisation and Economic Empowerment Act.

The bank last week reaffirmed its commitment to cede a stake to local shareholders in a move which NIEEB chairman Mr Wilson Gwatiringa described as a welcome development.

Last week, Stanchart spokeswoman Ms Vicki Robinson disclosed that they were in talks with Government over plans to increase local ownership of its business in the country.

On Friday Ms Robinson was quoted as saying: “We remain in discussion with the Government of Zimbabwe on this. Standard Chartered has taken the conscious decision to continue to maintain our long-standing commitment to doing business in Zimbabwe.”

The bank’s statement came after NIEEB threatened to close the institution and warned individuals and businesses against doing business with the bank until it complies with the indigenisation law.

Under the country’s empowerment laws, foreign-owned companies must sell or cede 51 percent of their operations to locals or to the State-owned NIEEB.

In a statement yesterday, Mr Gwatiringa said the board had noted with appreciation “the confirmation on Friday 12 April, 2013, by Vicki Robinson the spokeswoman of Standard Chartered Plc, that the UK’s second-largest bank by market value is in discussion with the Government of Zimbabwe, on legally mandated and therefore binding requirement to ensure that there is indigenous ownership of its banking business in Zimbabwe.”

Mr Gwatiringa added that the board was pleased to note that Standard Chartered has taken what its spokeswoman described as a “conscious decision” to continue maintaining the bank’s long-standing commitment to doing business in Zimbabwe.

However, the NIEEB boss took a swipe at individuals who he accused of trying to scuttle the indigienisation and empowerment programme.

Government policy is that doing business in Zimbabwe in the long haul will require the bank to comply with the Indigenisation and Economic Empowerment Act which does not and will not exempt the banking sector from compliance under any circumstance whatsoever.

“But the simple fact is that this will not be changed or stopped by the increasingly irrelevant musings of some certain individuals in certain quarters whose personal agendas are not supported by the law,” he said.

Mr Gwatiringa added that Government, through NIEEB, remains ready and willing to assist and work with Standard Chartered Bank to “facilitate and ensure its compliance with the law in a business-like manner that safeguards the bank’s interest along with the national interest.”

He said NIEEB will not hesitate to enforce the law in a bid to make sure that all companies comply with the law.

“As a board we will not hesitate to take decisive action in accordance with the law — including the withdrawal of its licence should Standard Chartered renege on its commitment confirmed on 12 April or should it fail to meet its lawful obligations in terms of the Indigenisation and Economic Empowerment Act,” he said.

No comments: