Minister handles Barclays Zimbabwe sale issue

Oliver Kazunga, Senior Business Reporter
THE Government is seized with Barclays Bank Zimbabwe sale where the institution’s low level managers have petitioned against its takeover by First Merchant Bank of Malawi, a senior Government official said yesterday.

A group of Barclays Bank low-level managers have lobbied the Government to block the bank sale alleging that the deal violates empowerment laws of the land.

The 63 managers have also demanded that the British headquartered Barclays Plc that hived off about 57 percent shareholding in the local unit last week, should have given a consortium led by Barclays Zimbabwe managing director Mr George Guvamatanga, the right to first refusal.

The managers have withdrawn a High Court application challenging the same to, instead, focus on lobbying the Government.

Permanent Secretary in the Ministry of Youth, Indigenisation and Economic Empowerment Dr Desire Sibanda told Business Chronicle yesterday:

“As the Ministry of Youth, Indigenisation and Economic Empowerment we are aware of the matter (Barclays Zimbabwe bank sale). The Minister (Patrick Zhuwao) is handling the matter and within a week or so, he will issue a press statement in that regard.”

Through their lawyers, Matsikidze and Mucheche, the managers wrote on June 6 to Finance and Economic Development Minister Patrick Chinamasa pointing out that in terms of section 25 A of the Labour Act, the matter of change of ownership or disposal of shares or business was an issue requiring the employer to consult the employees first.

The letter was copied to the Zimbabwe Stock Exchange, Ministry of Youth, Indigenisation and Economic Empowerment and the Reserve Bank of Zimbabwe.

The controversy over Barclays Zimbabwe began after Barclays Plc sold shares to the Malawi listed financial firm, which also operates Botswana, Mozambique and Zambia.

The disposal was part of a continent wide exit by the British bank, to focus on the European and American markets.

Barclays Bank Plc expects regulatory approvals in the third quarter.

@okazunga