The Zambia Forestry and Forest Industries Corporation has refuted media reports suggesting that the Attorney General had suggested that the Industrial Development Corporation illegally owns ZAFFICO.
Company Acting Managing Director Manuel Mutale says the story is allegedly based on an opinion by the Attorney General which has been taken out of context, with respect to an inquiry made by ZAFFICO on the legal process necessary for the successful listing of ZAFFICO.
Mr Mutale explained that Attorney General communicated to ZAFFICO indicating that the IDC holds the ZAFFICO shares on behalf the Minister of Finance in accordance with section 3 of the Minister of Finance (Incorporation) act, Cap 349 of the Laws of Zambia which makes it clear that the Minister of Finance can do all acts necessary or expedient to be done in the ownership or otherwise of shares, property or securities.
He said the Attorney general also communicated that the IDC owns the shares of ZAFFICO and indeed all other State-Owned Enterprises on behalf of the Minister of Finance who owns 99.9% shares in IDC, while 0.01% is owned by the Secretary to the Treasury.
Mr Mutale said the Attorney general further communicated that the specific resolutions relating to the listing of ZAFFICO requires that the resolution be that of the Minister of Finance and that the Minister of Finance issued his written approval of the listing of ZAFFICO Limited on 5th November 2019.
In a statement issued to the media, Mr Mutale has since urged investors, stakeholders and members of the public to dismiss the reports suggesting the Attorney General in any way or form suggested that the IDC illegally owns shares in ZAFFICO.
why does secretary to the treasury own 0.1%? why cant the ministry of finance own 100% and not 99.9%?? what’s the logic here. please help me understand
thanks
There is need of at least 2 shareholders
IDC currently in a ‘hang’ structure without strong link to infrastructure for research and development and innovation. It suppose to operate as conduit for transfer of innovation and technology that transforms into profit making ventures, and ultimately generate jobs. What IDC does is backstopping existing corporations. Or else, buying failed projects such as palm plantation from Diiego. Objective of Reviving old companies Mwinilunga pineapple, Mansa battery or Chipata bicycle…is good and bound to fail again but I won’t tell you why until the next government.
http://www.lusakatimes.com/2019/11/27/zambia-will-soon-default-on-its-debt-repayments/
lusakatimes.com/2019/11/27/zambia-will-soon-default-on-its-debt-repayments/