‘Zhuwao failed to interpret indigenisation law, a development that has resulted in investor flight’-Zanu PF MP Justice Mayor Wadyajena,

A ZANU PF MP has blasted Indigenisation minister Patrick Zhuwao, accusing him of failing to interpret the country’s indigenisation laws thereby precipitating an investor flight that has exacerbated the country’s economic collapse.
Gokwe-Nembudziya MP Justice Mayor Wadyajena, who is also chairperson of a Parliamentary Portfolio Committee on Youth, Indigenisation and Economic Empowerment, said Zhuwao worsened the country’s economic collapse by threatening to close down companies that failed to comply with the Indigenisation law.
Wadyajena was presenting his committee’s report during a pre-budget seminar in Bulawayo on Friday.
“The Minister set unrealistic dates for compliance and then went on to threaten the shutdown of companies that did not meet the deadlines,” he said.
“Not only was this highly irresponsible but it added to the scepticism of the investment community about the government’s seriousness on attracting meaningful investment.”
Wadyajena immediately called on government to amend the controversial law, saying the statute in its current form did not inspire investment confidence but capital flight.
He said the law must be amended to ensure clarity as Zhuwao had failed to interpret it, a development that has resulted in investor flight, forcing President Robert Mugabe to immediately intervene and clarify the law.
“The country is in a mess because of the highly irresponsible’ actions by Zhuwao who threatened company closures of failure to comply,” he said.
“The relevant legislation must be amended to reflect the clear position that the President has put forward. This is the only way to indicate that we mean business on policy consistency. Accordingly, relevant spokespersons must communicate within the confines of the law and not based on conjecture.”
He added: “His Excellency, the President of Zimbabwe, had to clarify the policy a third time after Honourable minister Zhuwao failed to interpret and understand the legislation and openly contradicted the Minister of Finance (Patrick Chinamsa) and the Governor of the Reserve Bank (John Mangudya) thereby causing confusing and capital flight.”
Mugabe was compelled in April this year to clarify the indigenisation law after Zhuwao and Finance minister Patrick Chinamasa were involved in a public spat over the law. Zhuwao, who had given companies deadlines to submit
indigenisation compliance proposals, clashed with Chinamasa and Reserve Bank of Zimbabwe governor John Mangudya on how to indigenise the banking financial services sector.
This forced Mugabe into action, admitting conflicting positions on how to implement the country’s black empowerment legislation had caused confusion to potential investors, and needed to be put to rest.
But despite Mugabe’s clarification, Wadyajena said the indigenisation law in its present form needed amendment. By Nqobani Ndlovu. source-newsday

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