THE Zimbabwe Stock Exchange (ZSE) has demanded the immediate resignation of the chief executive and the chairman of the troubled First Mutual Ltd (FML) before the company’s suspension from th
e bourse can be lifted.
The ZSE wrote a letter on April 27 to FML, spelling out the minimum demands it needed to meet before trading again.
In the letter the ZSE is said to have demanded that chief executive officer Norman Sachikonye and chairman Ian Makone step down from their posts before the company could be reinstated on the ZSE. The letter, sources say, also demanded far-reaching board and management changes.
The letter demanded that FML directors give a full and proper account of the impact of the ENG Asset Management scandal on company operations.
The ZSE said it felt that FML had not fully explained how they lost $30 billion from the $53 billion raised prior to the initial listing.
The ZSE is understood to have also restated its initial demand for Capital Alliance to reduce it shareholding in FML from the current 840 million shares to 200 million. Four executives, including Sachikonye, own 61% of Capital Alliance – representing 12,2% of FML. The management of the troubled assurance company has not yet responded to the issues raised by the ZSE.
ZSE chief executive officer Emmanuel Munyukwi could not give details on the letter but confirmed that the bourse had sent a letter to FML. He confirmed that the ZSE had issued minimum requirements to be dealt with before FML could resume trading.
“I cannot give you details about the letter because that is confidential information. We have indeed given them our requirements in writing. We have made some demands but I cannot give you any details,” Munyukwi said.
He said ZSE was concerned about FML because it was affecting investors.
“We want to protect the interests of investors,” Munyukwi said. “That is the major issue that is worrying us as the stock exchange. We wish to find a lasting solution to this issue. We are still waiting for their response. What we want is an assurance that the conditions we set out in the letter will be met. We need an assurance.”