IDC legally owns ZAFFICO-Manuel Mutale

 IDC legally owns ZAFFICO-Manuel Mutale

The Zambia Forestry and Forest Industries Company (ZAFFICO) says Industrial Development Corporation (IDC) holds ZAFFICO shares on behalf of the Minister of Finance.

ZAFFICO ZAFFICO Acting Managing Director Manuel Mutale said media reports alleging that the Attorney General had suggested that IDC illegally owns ZAFFICO are unfounded.

Mr Mutale said the story is based on an opinion by the Attorney General which has been taken out of context.

He said the position that the Attorney General communicated to ZAFFICO on the matter is that IDC holds ZAFFICO shares on behalf of the Minister of Finance in accordance with section 3 of the Minister of Finance (Incorporation) act, Cap 349 of the Laws of Zambia.

“This Act clarifies that the Minister of Finance can do all acts necessary or expedient to be done in the ownership or otherwise of shares, property or securities. The IDC owns the shares of ZAFFICO and indeed all other State-Owned Enterprises (SEOs) on behalf of the Minister of Finance.

“The Minister of Finance owns 99.9% shares in IDC, while 0.01% is owned by the Secretary to the Treasury. The specific resolutions relating to the listing of ZAFFICO requires that the resolution be that of the Minister of Finance. The Minister of Finance issued his written approval of the listing of ZAFFICO Limited on 5th November 2019,” he said.

He has urge investors, stakeholders and members of the public to dismiss the reports suggesting the Attorney General in any way or form suggested that the IDC illegally owns shares in ZAFFICO.

The Independent Observer

John Sakala is a Journalist yearning for independent journalism

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