Meikles suspended from ZSE for inflating RBZ debt

HARARE, – Hotel group Meikles has been temporarily suspended from trading on the Zimbabwe Stock Exchange with effect from  February  16 on allegations of overstating the debt it is owed by the Reserve Bank with the intention of manipulating its price on the stock market, the bourse said on Monday.

UPDATED: Meikles suspended from ZSE for inflating RBZ debt

Meikles reported a  $2,8 million loss for the half-year ended September 30 but said it was owed about $90 million by the central bank, a debt that was accrued as way back as 1998 from transactions related to the group’s dual listing on the Zimbabwe Stock Exchange and the London Stock Exchange.

“The temporary suspension was necessitated by the carrying amount of the asset placed with the Reserve Bank of Zimbabwe (“RBZ”) as disclosed in the Company’s audited financial statements for the year ended 31 March, 2014,” ZSE chief executive, Alban Chirume said in a statement.

“On 13 February 2015, the Securities and Exchange Commission of Zimbabwe received a written submission from the RBZ on the asset’s carrying amount, information which was availed to the ZSE. The ZSE believes that the information received is material and price-sensitive.

“On this basis, the ZSE deems it important to temporarily suspend trading whilst clarity is being sought in the interest of maintaining market integrity through promotion of equal dissemination of information. The ZSE has therefore, pursuant to Paragraph 1.4 in Section 1 of the ZSE Listings Requirements, temporarily suspended trading in Meikles Limited’s shares.”

The group 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.

While debating the RBZ Debt Assumption Bill on February 2, Bikita West legislator, Munyaradzi Kereke accused the group inflating figures with the intention of manipulating its price on the stock market.

Kereke, a former advisor to erstwhile central bank governor Gideon Gono who now sits on Parliament’s committee on finance and economic planning, said the RBZ debt to Meikles stood at $34,1 million as at December 2008 and could not have ballooned to $90 million, which Meikles published in its 2013 and 2014 results.

“Meikles published completely erroneous information (whose) implications are far much more in the financial system than just the numbers,” Kereke said at the parliamentary committee hearing.

“They created a stock exchange bubble which is tantamount to fraud. When you artificially present falsehoods on the stock exchange you uplift the stock price or keep it where it is when in effect it was supposed to fall. The stock exchange has been tampered with.”

Stockbrokers said the issue was debated by the stock exchange last Friday, leading to the suspension on Monday, but queried why the authorities failed to deal with the matter earlier.

“Meikles have been publishing these inflated figures for a while now and the stock exchange has been aware of this, so why were they allowed to get away with publishing them (figures) and why are they only acting now?” queried a stockbroker.

The central bank owes the private sector and individuals over $1 billion, accumulated through its quasi-fiscal activities at the height of Zimbabwe’s hyperinflation period between 2006 and 2008.

Finance minister, Patrick Chinamasa and the central bank governor have said figures in the debt assumption bill were still being verified. – The Source

Related Posts
FBC profit surges to $18,1million
HARARE– FBC Holdings said it lifted its profit after tax to $18,1 million in the 12 months to December 2015 from $5 million registered in the comparable period due to ...
READ MORE
It can only get worse
LATEST figures showing the Zimbabwe Stock Exchange (ZSE)’s market capitalisation plunged by US$2 billion to US$3,4 billion as at Wednesday year-on-year, weighed down mainly by the weak performance of blue ...
READ MORE
ZSE downward trends continues
HARARE - The Zimbabwe Stock Exchange (ZSE)'s downward trend continued with the benchmark index closing the day in the red at 105.86 points. The industrial index lost a further 2.30 points ...
READ MORE
Stock market records gains for first time in 14 months in April
HARARE,– The stock market recorded its first month-on-month gain in over a year in April, rising 7,9 percent and pushing market capitalisation over $3 billion. This was first monthly aggregate gain ...
READ MORE
Harare bond notes stand in for dollars
ZIMBABWE will introduce bond notes and restrict foreign currency spending to vital commodities to limit dollars leaving the country and exacerbating the nation’s cash crunch, Finance Minister Patrick Chinamasa says. "We ...
READ MORE
Rand slides as appetite for emerging assets wanes, stocks rise
JOHANNESBURG (Reuters) - South Africa's rand fell against the dollar as appetite for emerging assets was dented by a firming dollar in cautious trade ahead of the interest rate decision ...
READ MORE
Heavyweights propel Zim stocks higher
HARARE,– The ZSE industrial index this week advanced 1,56 percent to 137,47 points on gains by big cap counters. Market capitalisation rose 1,49 percent to $3,82 billion from the $3,77 billion ...
READ MORE
Zimbabwe imports seen falling as South African rand appreciates
HARARE,– Imports into Zimbabwe will drop three percent this year as regional currencies recover against the US dollar, helping Zimbabwe begin to narrow its current account deficit, an advisory firm ...
READ MORE
Innscor’s restaurants unit to list on Nov. 6
HARARE (Reuters) - Zimbabwean fast food group Innscor Africa will separately list its restaurants unit on Nov. 6, allowing it to pursue mergers and acquisitions of companies operating similar businesses, ...
READ MORE
Euro hits 4-week high after report of ECB rate hike talks
NEW YORK - The euro hit a more than four-week high against the dollar on Friday after a report that the European Central Bank had discussed the possibility of raising interest ...
READ MORE
FBC profit surges to $18,1million
It can only get worse
ZSE downward trends continues
Stock market records gains for first time in
Harare bond notes stand in for dollars
Rand slides as appetite for emerging assets wanes,
Heavyweights propel Zim stocks higher
Zimbabwe imports seen falling as South African rand
Innscor’s restaurants unit to list on Nov. 6
Euro hits 4-week high after report of ECB

Arts & Entertainment

Arts & Entertainment

Where To Stream Drake’s ‘More Life’: Playlist Will Be Available On Spotify And Amazon

17th March 2017 Staff Reporter 0

After a long wait, Drake’s next project, “More Life,” is finally releasing on Saturday. Originally believed to be an Apple Music exclusive, it’s now looking like the playlist will also be available on other streaming […]

Arts & Entertainment

Rick Ross Feuding With Birdman, Nicki Minaj? Listen To New Album ‘Rather You Than Me’

17th March 2017 Staff Reporter 0

Rick Ross released his new album “Rather You Than Me” Thursday and took some shots at Birdman and Nicki Minaj. In the song, “Idols Become Rivals,” the MMG star dissed rapper Birdman for not paying his artists […]