Zhuwao slammed over company closure threat

YOUTH, Indigenisation and Economic Empowerment minister Patrick Zhuwao has been slammed for pushing ahead with his hardline stance of seeking to close all foreign-owned companies that would have failed to pay empowerment levies by April 1 this year.

BY NQOBILE BHEBHE

CDE-PATRICK-ZHUWAO

Zhuwao last week said he would not hesitate to shut down non-compliant firms when the deadline lapses.

Last October, Zhuwao said $93 million could be raised from the proposed 10% empowerment levy on companies that had not yet complied with the country’s indigenisation laws.

He said all foreign-owned companies would be levied 10% of their gross income towards the Youth Empowerment Fund and the figure would increase yearly as a way of forcing companies to cede the stipulated 51% stake to locals.

The levy, according to Zhuwao, would be part of measures to raise internal resources to fund the indigenisation programme and would be distributed through community share ownership trust schemes.

However, the opposition People’s Democratic Party (PDP) said Zhuwao’s move was “reckless” and would scare away potential investors.

“Records show that the majority of companies have failed to comply with the Indigenisation and Economic Empowerment Act as it is bad at law and at a time when companies are operating below capacity due to the harsh economic conditions,” PDP national spokesperson Jacob Mafume said.

“Zhuwao’s statement is the height of crass insanity and vindicates the PDP’s position that they are no genuine reformers in Zanu PF, but only looters and grabbers.

“The indigenisation and empowerment model will only ensure that the already corruptly rich in Zanu PF get richer and no serious businessperson will invest in this country while thousands more people will lose their jobs.”

Zimbabwe in 2008 enacted the indigenisation law to compel all foreign-owned entities to give away at least 51% of their stakes to locals, but the law has faced resistance and been blamed for low foreign direct investment.

10 Responses to Zhuwao slammed over company closure threat

  1. mgobhozi wezintabeni March 23, 2016 at 7:54 am #

    Zanu pf is at war with itself,it is at war with investors,every thing around has turned into an enemy,then what should one expect in such a poisoned environment.The country continues to suffer.

  2. gutter poet March 23, 2016 at 8:09 am #

    This guy is digging an idiot pit for himself. A past time he has perfected to a T..Why dont we just fold our arms and watch as he CLOSES these non existent companies. Yah, LET HIM CLOSE THEM! And as he appears to be PUBLICITY HUNGRY the media should follow him as he ‘closes’ these invisible companies of his!

  3. maita March 23, 2016 at 8:31 am #

    Ko kana mbavha dzaba dzimwe dzinosiya dzapisa imba yacho.

  4. Sekuru March 23, 2016 at 1:13 pm #

    Anorwara sasekuru wake

  5. Game of thrones March 23, 2016 at 1:35 pm #

    Useless guy with no relevance whatsoever. Gutter poet you’re 100% correct. Let him close them! There are no companies left saka ngaavhare. Vanhu vanoda kuona vanhu vachitambura nekushaya mabasa.
    Minister of nothing!

  6. Collin March 23, 2016 at 2:22 pm #

    A case of reaping where one did not sow

  7. nehanda nyakasikana March 23, 2016 at 3:41 pm #

    this juao is a comedian…

  8. nehanda nyakasikana March 23, 2016 at 3:43 pm #

    and so is his whole tribe…has nothing to offer except misery to this nation

  9. DonnaRuss147 March 23, 2016 at 5:52 pm #

    My current salary is more than 3400 dollars each week . Over a year ago I was in a horrible condition, jobless and no bank credit. Thanks to one of my friends who showed me a way where I was able to gather myself and making average of 50 d/h. So it can change your life as it has changed mine….d6!

    ****> w­w­w.C­a­r­e­e­r­s-R­e­p­o­r­t.c­o­m

  10. Runyararo March 23, 2016 at 11:55 pm #

    At a time when most countries are mending fences and investing in infrastructural development, the Zanu PF administration is busy chasing away potential investors through archaic and punitive policies. Who will pay for these debacles? Everyone in Zim is an enemy of the state except of cause a handful of perceived loyalists.What goes round comes round comrade Minister and every dog has its day.

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