Posted by HARARE – “Be wary of Mugabe’s benefaction,” is the warning Professor John 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. – Daily News
wise words from a wiseman who has seen all the dirty tricks from the vampires.
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Musoro,If you’re referring to Makumbe as a “wiseman”,you need to be sent to a mental institution.
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Musoro saka urikuti makumbe is wise? Wise pakuita sei, pakutaura?
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Nigel was never forced into this merger and for what ever reasons for the de-merger he is a big boy who must accept the fruits of his decision to partner with Moxon in the first place.
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Poisonous people like Makumbe have no wise advise they can give to a patriotic indigenous businessman like Chanakira.
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no, poisnous serpants like matibili have no wise advice they can give to patriotic and native businessmen like Nigel. Just thought id correct you.
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Patriotism as defined by ZANU PF? You’re a joke man. Unfortunately for you Chanaz is probably inclined towards the moral thing to do.
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Matibili wants to finish off Chanakira. I don’t think Nigel will be tempted to get close and acquire leprosy from Zanu.
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Its chanakira looking for help. If he is ok then fine no body bothers.
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I support Matibili on this one , the Morton guys wood-winked Nigel….just like Rhodes cheated lobengula with sugar….
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honestly, matibili is uttering rubbish. Let business people do business, mergers always have conflict, regardless of race. Nigel and John didnt concur on a lot of financial issues etc. Nigel is no lobengula. besides, lobengula might have been “hoodwinked” but its not like the white man wasnt feeding the nation. Food on the table matters more than having nothing at all. Honai hondo yeminda, people have gone for years hungry. Nxa mhani
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Get a life how do you draw a comparison betwn Nigel and Lobengula. If you are not ready to play with the big fish swim in the baby pool bra. This man has just as many lawyers as Moxon.
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this is not a unique case. in the 90s gvt introduced policies which forced companies like costain and sisk going into partnerships with unheard of companies like fmi. problems started when the little boys wanted to be paid by their newly acquired titles, as heads of multi-mil dollar companies while the big boys wanted to share profits according to investment. in the end instead of win-win it was lose-lose.
my problem with zanu is not of implementing bad policies. sometimes trial and error is the only way to go. however when you refuse to learn from past experience (yours or others’) then we have a problem. murambatsvina caused a lot of homelessness but we carried on regardless. printing money, farm invasions, ‘educating’ villagers and incessant propaganda on radio are meant to show people how evil the west is……….
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makungotaura henyu zvimwe Mudhara uyu ngaabve mhani, whether he did good things or bad things , mudhara uyu haadiwe neruzhinji. haadiwe uyu mudhara uyu mhani. ari kusemesa vanhu mhani.
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Iwe,musoro wakutibhowa nenyaya yako iyi.For your own info tsvangirai is also supposed to step down at the congress next year.Ari kurambirira kubva pachigaro,shame on u
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shame on your matibili who has forced his will on the people of zimbabwe even though he is a scape goat. shame on him and you zaoids. go to hell you zhing zhong stooges and puppets.
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Makumbe is a wise man mugabe is fool idio.t, those that can read should take advise from Prof Makumbe the wheelchair bound goblin has taken the whole nation for a ride.
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No one has cared to politely ask the don what happened to his little grocery shop at Marenga which today stands neither a shop nor one with any grocery. Wise words indeed. But very revealing in terms of how we blacks offer pro deo our vital thoughts to those least in need but whose attentions we coquettishly seek.
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