HomeBusiness DigestSecurities Commission Revokes ISB Securities Suspension

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THE Securities Commission of Zimbabwe (SEC) has revoked a three-week suspension from trading on the Zimbabwe Stock Exchange of ISB Securities and its managing director Geoff Mhlanga after its was sued in the High Court.

Alban Chirume, SEC chief executive, on Wednesday wrote a letter to Mhlanga informing him about the lifting of the suspension.

This followed an urgent High Court application on Monday by ISB Securities challenging allegations by the SEC of non-compliance to the commission’s requirements on submission of returns and for allegedly refusing the commission to carry out investigations.

The commission also suspended the securities firm for allegedly blocking its appointed accountants and auditors, KPMG, from probing the company’s trust accounts.

Businessdigest understands that the dispute emerged when the ISB stopped SEC inspectors from investigating trust accounts arguing that only chartered accountants were allowed by the Securities Act to undertake this role.

The lifting of the suspension also followed a meeting between the SEC, ISB and Finance minister Tendai Biti on November 10 where the minister, according to information at hand, expressed reservations on the action that was taken by the commission.

“The above suspension has been revoked according to Section 49 (3) of the Securities Act (Chapter 24:25) with effect from November 24,” reads the letter from Chirume. “The decision is based on the substantial compliance by the aforementioned persons. The uplifting of the suspension is entirely without prejudice to any other decision and or action that the Securities Commission of Zimbabwe may take.”

But the ISB through its lawyers Mtetwa and Nyambirai challenged the November 5 suspension arguing that everything was in order when the dispute emerged.

The company said it was determined to see the dispute settled through the courts.

The SEC has since filed a notice of opposition to the court challenge.

“We do not accept that we have since complied as we were in compliance before the suspension,” Mhlanga told businessdigest this week. “We have been victimised. No other stockbroker has been inspected. We are the oldest broker in town and we contributed to the crafting of the Securities Act”.

 

Bernard Mpofu

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