The seizure was authorised by the countrys two home affairs ministers, Kembo Mohadi and Giles Mutsekwa, according to a government gazette published last Friday. The complicity of the MDCs Mutsekwa in the action has led critics to ask if that party has now become part of the countrys problems rather than a solution. Kingdom Meikles, Tanganda Tea Company, Thomas Meikles Centre and Murlis Investments were all listed as specified companies in the gazette, which allows the government to place them under administration. Kingdom Meikles managing director, Andrew Lane-Mitchell, is cited as a specified person under provisions of the Prevention of Corruption Act. The move, although not unexpected, follows Meikles Africas messy divorce from a merger with Kingdom Financial Holdings in June. Before the de-merger, an investigation by BCA Consultancy concluded that the Meikles family led by John Moxon had established externalisation deals indirectly or directly. Meikles is accused of stashing huge sums of foreign currency in foreign bank accounts in breach of Zimbabwes exchange control regulations.
No wrongdoing
But, a year into an intensive and highly invasive investigation, no allegation of any wrongdoing on the part of Moxon or his executives has been forthcoming. The company has vowed to fight. The companys lawyer, Sternford Moyo of Scanlen and Holderness, said the specification was illegal. Moxon said they were preparing to ratchet up international knowledge of what was going on in Zimbabwe. The unity government, and the MDC in particular, will have to accept responsibility for their actions. The fact is that there are a large number of people who look to Meikles for their livelihood. The two co-ministers of home affairs have no legal right to do what they have done. They have furthered the destruction of the Zimbabwean economy, he said. The investigators appointed by home affairs, who have no qualification to run any company, are now going to interfere in the Meikles group and, in a very short time, the group will be destroyed.
I have indicated that I am able to raise international funding of up to $100m for Meikles projects. I now raise my hands in horror. I cannot raise a cent for Meikles or for Zimbabwe and I worry about the thousands of employees in the Meikles group and their dependants and I say shame on Chanakira and all those that ride with him. Meikles will argue that under the terms of statutory instrument 128 of 2006, the administration of the Prevention of Corruption Act was assigned to the now obsolete ministry for state enterprises, anti-corruption and anti-monopolies. Moyo said: Although that ministry is now defunct, the statutory instrument has not yet been repealed, therefore, the joint ministers of home affairs are not the minister referred to in the statute.
Chanakira blasted
It is apparent that Kingdom Meikles chief executive officer, Nigel Chanakira, influenced these officials in Zimbabwe to impose the law, which operates without any reference to a court or judicial process, said one analyst. This so-called specification of Kingdom Meikles is seen as a tactic by Chanakira to block an extraordinary general meeting on September 24 in which shareholders are voting on his removal, in accordance with the agreed terms of the demerger of the business. Last night, market analysts said Chanakira was embroiled in a shady game. Some said his bank, Kingdom, was now geared, with the assistance of Zanu (PF), to go into partnership with South African giant Shoprite when they take over OK Stores.
On the day of approval of the de-merger, Econet chair Tawanda Nyambirai blasted Chanakira and said the use of the specification as a mechanism of settling disputes between private individuals was immoral. Chanakira initiated the specification of John Moxon.
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