Meikles to resolve issues or face axe

ZSE chief executive Alban Chirume

THE Meikles Group has been given up to next week Monday to resolve its issues with the Reserve Bank of Zimbabwe (RBZ) or face another suspension from trading on the Zimbabwe Stock Exchange (ZSE).


Meikles was last week temporarily suspended from trading on the ZSE on allegations of trying to manipulate its stock price through “inflating” the debt it is owed by the central bank on Tuesday.

The trading ban was lifted on Monday.

It its half-year results released on September 30 last year, Meikles said it was owed about $90 million by RBZ, but latest data from Parliament showed that it was owed $47 million as at the end of December 2013.

However, in a statement yesterday ZSE chief executive officer Alban Chirume said the decision to reverse the temporary suspension was necessitated by the fact that Meikles Limited was not given an opportunity to make representations in terms of Section 111 of the Securities and Exchange Act (Cap 24,25) and Paragraph 1,.5 of the ZSE Listings Requirements prior to the temporary suspension on February 16 2015.

He said the temporary suspension and its lifting were approved by the Securities and Exchange Commission of Zimbabwe pursuant to Section 64 of the Securities and Exchange Act (Cap 24,25).

Chirume, however, said even though the ban has been lifted, the group should resolve its issues with the central bank.

“The ZSE has written to Meikles Limited in relation to matters that are of concern to the ZSE primarily related to the carrying amount of the “balances with the RBZ” as well as the possible financial impact and certain matters that have recently come in the public domain pertaining to matters that may have a material impact on the soundness and accuracy of the 2014 financial statements,” Chirume said.

“We have addressed Meikles Limited separately and given them until 4:30pm on Monday 2 March 2015 to respond to the specific issues.”
Chirume also advised shareholders to exercise caution in dealing in the company’s shares.

Meikles has said it was banking on the release of the money to fund its expansion programmes as well as compliance with indigenisation and empowerment laws.