Munyukwi hearing put off

Initially, the hearing was supposed to take place today but the ZSE board advised Mr Munyukwi last Thursday that it had been rescheduled, chairperson Mrs Eve Gadzikwa said in an interview yesterday.

“It did not take place because his lawyers said they were not yet ready,” said Mrs Gadzikwa. “We are talking to them for a fresh date.”
Mr Munyukwi, who has been running the ZSE since 2001, is facing incompetence charges which include failure to implement de-mutualisation of the bourse.
He is also alleged to have failed to register the ZSE with the Securities Commission of Zimbabwe. SecZim is the country’s regulator of capital markets. The ZSE board is also questioning the manner in which Mr Munyukwi handled the Ariston and Rio Zim recapitalisation transactions.

The ZSE boss has decided to remain silent about the allegations levelled against him until the hearing.
While the ZSE board suspended Mr Munyukwi, speculation has been rife that SecZim, which, since 2009 had clashed with the exchange, could have pressured the Mrs Gadzikwa-led board.
In June 2009, the ZSE was on a collision course with the SecZim after the exchange ignored a directive by the latter to stop TN Holdings’ extraordinary general

meeting. TN shareholders, with the ZSE blessing, went on to approve the US$6,6 million rights offer despite an order by SecZim not to go ahead with the meeting.
This was after the ZSE committee, as custodians of the listing requirements, allowed TN to proceed with the shareholders’ meeting. SecZim had raised concern over TN Holdings’ rights issue price.
On November 6, 2009, SecZim suspended ISB Securities (Private) Limited and Mr Geoff Mhlanga from carrying out all licensable activities other than settling all outstanding deals as at end of that day.

The basis of the suspension was that the SecZim had instituted investigations on the conduct of ISB Securities on the management of trust funds. ISB, however, went on trading in defiance of SecZim order.
Two weeks earlier, ZSE and SecZim had clashed over US$2,3 million in levies collected by stockbrokers from investors. SecZim had instructed brokers to remit funds to the commission but the ZSE raised the stop sign, directing stockbrokers to ignore the order.

There was also speculation that the resignation of former ZSE interim chairman Sijabuliso Biyam in September 2011 was linked to endless squabbles with SecZim.
Market sources indicated that Mr Biyam had been nominated to sit on the substantive ZSE board, but did not see eye to eye with SecZim over the selection criteria of other board members. The appointment of the board led by Mr Biyam came after SecZim had nullified the ZSE board led by Mr Ndodana Mguquka that was appointed by the ZSE listing committee in 2010.

SEC was not happy with the appointments and demanded the removal of veteran stockbrokers Mr Seti Shumba and Mr Bart Mswaka.