admincompanies to identify which of them have not complied with the indigenisation law requirements.
This follows the realisation that the bulk of non-mining foreign firms have not complied with requirements in line with provisions of the law.
Foreign-owned mining companies, on which Government efforts have been concentrated lately, have until next Saturday to submit their indigenisation proposals.
In terms of the Indigenisation and Economic Empowerment Act foreign companies are compelled to sell at least 51 percent of their shareholding to indigenous Zimbabweans.
NIEEB chief executive Mr Wilson Gwatiringa yesterday urged non-compliant foreign firms to submit their indigenisation plans immediately.
He warned foreign companies that failure to comply would attract hefty fines or result in business licences being revoked in terms of the law.
“The board would undertake a wide-ranging indigenisation compliance audit across all sectors of the economy,” said Mr Gwatiringa. “This would involve an indigenisation assessment rating of the companies as required by Section 3 of the Indigenisation and Economic Empowerment Act Chapter 14:33.”
The Indigenisation Compliance Inspectorate, from the Ministry of Youth Development, Indigenisation and Empowerment and the Zimbabwe Republic Police will carry out the indigenisation compliance audit, starting next month
Mr Gwatiringa said they would investigate, audit and – if need be – recommend appropriate measures, including fines and licence cancellation, to enforce compliance with the provisions of the law.
“Some of the serious consequences of non-compliance include cancellation or suspension of business or operating licences as well as payment of hefty fines, therefore we would like to encourage or all companies and business that have not complied to take immediate steps to do so.”
Asked if threats of licence cancellation were contradictory to recent remarks by Mines Minister Obert Mpofu, Mr Gwatiringa said provisions of the indigenisation law allowed cancellation of licences for non-compliant firms..
To ensure transparency and all-inclusive implementation are achieved various structures were put in place to facilitate Government programmes.
Government early this year commissioned 13 sector specific committees to look into indigenisation thresholds appropriate for different sectors of the economy.
The committees submitted their findings to NIEEB, which compiled a report submitted to the Ministry of Youth Development, Indigenisation and Empowerment.
Consultations are currently underway with the parent ministries that supervise the various sectors, including financial services, to come up with legislation for enforcement of the final positions reached in terms of each sector.
Locals will gain ownership in foreign firms through community share trusts, employee share ownership schemes, direct equity purchases and a sovereign wealth fund to be created to house shares for future generations.
Online Reporter