HomeNewsLocal companies risk closure — NIEEB

Local companies risk closure — NIEEB

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LOCAL companies risk closure and prosecution if they fail to acquire the compulsory indigenisation certificates, National Indigenisation and Economic Empowerment Board (NIEEB) chief executive officer Wilson Gwatiringa has said.

Report by Tarisai Mandizha

NIEEB last week gave local entities a 14-day grace period to apply for compliance certificates, failure of which the companies, despite being locally-owned, would be deemed non-compliant.

The grace period lapses on Thursday.

“Like any other law, failure to comply with the law will take its course. They (companies) will be prosecuted,” Gwatiringa said.

Under the country’s indigenisation and economic programme, foreign-owned companies are required to sell 51% shareholding to locals.

According to the notice, the certificates will be prima facie proof that the company would have successfully complied with the Indigenisation Act.

He said the companies that would have failed to comply would be punished for breaking the law.

However, Gwatiringa said many companies were taking the matter seriously adding that firms had legal advisors that were aware that the law had to be followed.

He said indigenisation was a process which would not be completed in one day.

“Indigenisation certification is the final stage of indigenisation implementation,” Gwatiringa said.

A total of 226 companies were shortlisted to comply within 14 days.

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