ZSE Suspends KMAL
Harare — Kingdom Meikles Africa Limited (KMAL) has been suspended from trading on the Zimbabwe Stock Exchange after Zanu PF-Chanakira instituted trumped up allegations of externalisation of foreign currency.\r\n
ZSE chief executive Mr Emmanuel Munyukwi confirmed the suspension but would not divulge much. "Yes its correct, but I can not go into details," Munyukwi said.
According to an Extraordinary Government Gazette published last Friday, Kingdom Meikles Limited, Tanganda Tea Company (Pvt) Limited, Thomas Meikles Centre (Pvt) Limited and Murlis Investments (Pvt) Limited were listed as specified companies.
Home Affairs Co-Minister, Kembo Mohadi according to the so called Prevention of Corruption Act (Chapter 9:16) then appointed Messrs Budhama Chikamhi and Cleopas Mikungunugwa as investigators of the specified companies.
Former KMAL chairman, Mr John Moxon was also specified by Government in January this year on allegations of externalisation of foreign currency.
Mr Moxon who controlled 43 percent in KMAL had serious differences with Mr Nigel Chanakira, former KMAL chief executive, after the former tried to upstage the latter in an a boardroom coup.
It is alleged that Mr Moxon externalised US$7,4 million from the sale of Meikles Africa Ltd shares to a South African company, Mvelaphanda Group without notifying KMAL.
The specification of the companies means that they can no longer operate on their own, and a third party would be appointed to run them.
Furthermore, the directors of the specified companies can only have access to limited amounts of the money per day with permission of the person authorised to give such.
However this indicates that Government will soon appoint an administrator to run the affairs at KMAL. The group demerged in June this year, ending a two-year marriage following irreconcilable boardroom squabbles mainly between Mr Moxon and Mr Chanakira.
Following the demerger the companies Kingdom Financial Holdings and Meikles Africa were supposed to re-list separately on ZSE. Shareholders of the two would maintain their respective shareholding in the demerged entities.
The Extraordinary General Meeting for the demerger of KFHL and Meikles Africa passed a resolution that required KFHL directors to step down from the KML board while Meikles Africa directors would reciprocate.
KMAL the result of a 2007 merger between KFHL, Meikles Africa Limited, Tanganda Tea Company and Cotton Printers — has been in the news for the wrong reasons since its merger.