Munyukwi exit package talks done — Gadzikwa

THE Zimbabwe Stock Exchange (ZSE) is set to complete negotiations with suspended CEO Emmanuel Munyukwi for an exit package putting an end to the six month-standoff.

Munyukwi was suspended in May over alleged incompetence, which includes, among other things, undermining the board and questionable procedures in operations and procurement.

He was supposed to appear before a board hearing, which would have allowed him to appeal against the charges levelled against him.
However constant postponements and requests for more time led the board to commence negotiations for an exit package.

ZSE chairperson Eve Gadzikwa told businessdigest the board was in the process of concluding negotiations, adding an announcement would be made public next week.

Market analysts say the conclusion of the Munyukwi issue closes the chapter on the ZSE and Securities Commission of Zimbabwe acrimony.
It is understood Munyukwi is asking for a figure around US$1 million, which market analysts say is fair considering the years he spent at the exchange. Munyukwi has been head of the exchange since 2001.

Last year, the stock exchange had an annual income of US$1,647 million against total expenditure of US$1,034 million. This resulted in a surplus for the year of US$612 947.

Speculation is now rife on who will replace Munyukwi as head of the institution although analysts say a new CEO will be drawn from the Zimbabweans who have had experience in a developed and automated market. The ZSE will be automated in the first quarter of 2013.
Meanwhile, the ZSE is in the process of drafting a framework for the creation of a bourse primarily meant for SMEs, Listings Executive Lina Mushanguri said.

Mushanguri, who was presenting at the Sustainable Funding for SMEs Seminar held on Wednesday, said as ZSE they had noticed that SMEs are fast growing and therefore play a pivotal role in the Zimbabwean economy.

She said as an exchange, they had however recognised that despite their contribution, SMEs are faced with funding challenges.
Mushanguri said the SMEs Stock Exchange would be part of the ZSE but will be run on a separate board.

Mushanguri said the ZSE would have to adjust current rules and regulations to accommodate SMEs since they operate on a smaller level as compared to bigger companies listed on the ZSE.



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