Home » Business » Meikles Asked for Full Disclosure

Meikles Limited has been asked to provide full disclosure into several issues which include transactions undertaken by family related companies, a lack of transparency in the investment in Mentor Africa Limited and other issues. In a notice, the Securities and Exchange Commission of Zimbabwe says it has sought to formally engage Meikles following the listed entity’s interactions with the ZSE that led to the counter being suspended. SecZim says the move is being done to enable shareholders, minorities in particular and the capital markets at large, to have a better understanding of the market.

Questions are being asked over various issues including related party transactions over funds held by Cool Bay investments that were moved to Gondor Capital but were described as funds held for investment.

“What is the factual status of the funds and why isn’t it available for the company to utilise in the interest of all shareholders,” asked SecZim

The 2014 annual report shows that while some effort was made to recognise the possibility of recovering 65 percent of the $22 million funds in the group’s accounts in 2011, about $11,7 million is not accounted for and nothing has materialised almost six years on.

The funds, earmarked for future investment in Africa, are currently held by Gondor Capital Limited, a South African registered shareholder entity, held 100 percent by the Moxon Group.

Meikles said back then, the purported expansion investment outside the country would mobilise upward of $200 million for capital investments into Meikles Limited and Zimbabwe.

The funds, which later sparked serious boardroom squabbles in the conglomerate, were allegedly transferred to South Africa by Meikles Limited executive chairman Mr John Moxon without the full consent of other directors in the group.

However, the outcome of litigation, instigated by former chief executive of Kingdom Meikles Africa Limited Mr Nigel Chanakira, eventually allowed for a recoverable sum denominated in South African rand equivalent to $11,7 million, an amount later reinstated in the group accounts.

SecZim is also asking questions on the Reserve Bank funds and treasury bills. Meikles is also expected to answer questions on its management and board structures following the dismissal of Mark Wood and the rumours around the status of financial director Onias Makamba’s employment.

SecZim says Meikles is required to notify the exchange of any changes in the composition of its board.

Source : The Herald

Archives