adminNyemudzai Kakore Herald Correspondent
Harare City Council has disbanded its business unit, Sunshine Holdings (Private) Limited, which managed and monitored City Parking (Pvt) Ltd, Sunshine Meats and Mabvazuva (Pvt) Ltd, after it allegedly failed to declare reasonable dividends.
The business entity was also allegedly no longer representing shareholder interests, with its corporate governance being undesirable.
The city council would now directly superintend the business units under its Business Development Unit Division.
Acting Town Clerk Engineer Hosiah Chisango said council was advised to authorise the voluntary winding up of Harare Sunshine Holdings after seeking external legal opinion on a way forward.
“Council resolved to authorise the voluntary winding up of Harare Sunshine Holdings (Pvt) Ltd in terms of the provisions of the Companies Act (Chapter 24:03),” read the recent minutes of the Business Committee.
“The issues of assets, liabilities and employees of Harare Sunshine Holdings would be dealt with in terms of the law.
“The Special Business Unit and Joint Ventures would report directly to the office of the Town Clerk through the Business Development Unit Division.
“This model was already operational in council on the Harare quarry business.”
Eng Chisango told the Business Committee that the decision would result in decisions being made promptly as the city would be having direct control and underscored that it was only Harare Sunshine Holdings which was being voluntarily wound up with all other subsidiary companies remaining.
Council resolved that Sunshine Holdings Board members would be reassigned to the Boards of the subsidiary companies.
Board members, Mr Muchadeyi Masunda and Mrs Divine Ndlukula, were reassigned to Sunshine Meats (Pvt) Ltd while Mr Percy Toriro and Mr David Cruttenden were moved to City Parking (Pvt) Ltd and Mr James Mtizwa would join the Sunshine Development (Pvt) Ltd board.
“Council resolved that the term of office for the board members shall be for a period of three years from the date when they were previously appointed to the Harare Sunshine Holdings (Pvt) Ltd,” read the minutes.
Eng Chisango said the city council approved the engagement of the former employees of Harare Sunshine Holdings, adding that all relevant recruitment processes be complied with through the Human Resources General Purposes Committee.
He said all wholly-owned council businesses would also be required to report to Council on a quarterly basis through his office.
“The committee further set a requirement that all City of Harare businesses shall be required to submit quarterly report and make presentations where necessary to council through the Business Committee,” he said.
“The quarterly reports and presentations shall be presented to the committee through the Business Development Unit in the Town Clerk’s Office.”
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