At the centre of the problems at both firms was businessman Patterson Timba, who allegedly misinformed the bourse about cash transactions he secured from international investors in his “empires”.
Tycoon Timba has major interests in both AFRE and the RTG Group. He was former Chairman at RTG before being kicked out for financial misdemeanours.
He was also forced to resign from the AFRE Group after the scam was discovered by the Reserve Bank of Zimbabwe two weeks ago.
AFRE is the holding company of Renaissance Financial Securities currently led by Bart Mswaka, a former ZSE Chairman. Timba’s alleged financial scam was discovered at Renaissance.
Telecommunications giant, Econet Wireless Zimbabwe recently offloaded its shareholding in AFRE, saying the Group is now concentrating on its “core business” of mobile telecommunications services locally and regionally.
Trading in the shares of AFRE and RTG resumed after the Africa Day holiday following the lifting of the suspension after seven trading sessions in absence.
AFRE last traded at $0,04 before the suspension and opened 8 percent lower at $0,03 as “things seemingly begin to settle” at the two troubled empires.
However, RTG, which last traded at $0,02, recorded no trades with the only activity at the counter being a bid at $0,01, which was 58 percent lower than the last trading price.
AFRE’s shares are currently being snapped up for $4,95, while RTG shares are going for $0,01 each.
Both firm’s market capitalisation could not be established due to change-over of shareholding and investment by Friday.
Post published in: Economy