Three directors booted out of RTG

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AFTER recently increasing its stake in the Rainbow Tourism Group (RTG) to 60%, the National Social Security Authority (Nssa) has kicked out three RTG directors who were nominated by British tycoon Nicholas van Hoogstraten.

By Hazel Ndebele

Last week, Nssa demanded that Thandiwe Mlobane, Shingirayi Chibhanguza and Ian Haruperi resign or face the prospect of having their fate sealed at an extraordinary general meeting (EGM).

Nssa — the largest shareholder in the group — which previously had 40% shares in RTG, purchased another 19,95% shareholding in the hotel group from First Mutual Holdings (FMHL) a fortnight ago, giving it total control in the hotel operations.

Van Hoogstraten was also interested in the FMHL stake, but lost out.

Operations at RTG have been ravaged by shareholder bickering over the years involving the British businessman who has 36% shareholding and other shareholders.

A letter dated October 3 written to RTG finance director Napoleon Mtukwa by Nssa board chair Robin Vela which was seen by the Zimbabwe Independent, demanded that the directors resign with immediate effect.

“We write to formally request in terms of Section 126(1) of the Companies Act (Chapter 24:03) (“the Act”) that you cause the company to convene an extraordinary general meeting within 21 days of receipt of this requisition subject to compliance with the provisions of Section 135 and Section 175 of the Act,” reads the letter.

“Nssa advised that the objectives of the extraordinary general meeting shall be for members of the company to consider and if deemed fit, to pass with or without modification the ordinary resolutions that the trio be removed as a directors of the company with immediate effect.

“The National Social Security Authority has a combined shareholding well in excess of the percentage required to pass an ordinary resolution. In view of this, we suggest that you request the directors to resign immediately in order to avert a needless extraordinary general meeting.

“Should their respective resignation letters be received by the company by 4pm on Thursday October 5 2017, and the same communicated to the requisitioner, the requisitioner will stay the meeting. For the avoidance of doubt, in the event that no resignation letters are received on or before the said date, we request that you comply with our requisition to convene an extraordinary general meeting.”

Sources close to the developments told the Independent that the three directors resigned by the given date, therefore an EGM will not be held.

In an interview with this paper, Vela said the resignation of the directors was necessary.

“We now want to get RTG in shape for the benefit of all stakeholders and demonstrate what can happen when shareholder issues are put to one side,” he said.

“This is not about ego, but about allowing a business in a strategic sector to flourish without the pointless outside bickering.”

Other than shareholder brawls at RTG, Nssa has also been involved in a shareholder scuffle with Van Hoogstraten in agro-focussed group CFI Holdings.

3 thoughts on “Three directors booted out of RTG”

  1. ashleighkm says:

    Its only in Zimbabwe. where a shareholder with more than 30% ownership is denied board representation. What guarantee is there that NSSA will act for all shareholders benefit, when they want to have a NSSA clique as the ‘board’. Nicholas van Hoogstraten deserves board representation so that they will look out for his interests.

  2. Masvingo Zimuto says:

    NSSA are only good at talking. Nicholas is a foreign investor who if given an opportunity to turn around RTG the results will attract other foreign investors who have access to foreign capital. Just last year we got reports that NSSA bosses were abusing pensioners funds by lending the money to their girlfriends. These government institutions are tried and tested failures.

  3. jethro says:

    Vela & Mupfumira. Very bad combination

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