Government owned Zimbank purging workers who own shares

By Lance Guma
28 March 2006

Workers at the state owned Zimbabwe Banking Corporation (Zimbank) have alleged that management is carrying out a purge of all workers who hold shares in the bank. The workers under the auspices of Finhold Services (Private) Limited (Finserve) - the company holding their shares - say management is still ignoring a Supreme Court ruling ratifying the sale of shares to them. A new board running the bank and led by Dr William Mudekunye has since 2001 been trying to reverse the transaction but to no avail. This resulted in the matter going to the courts with the workers winning.

Lionel Saungweme in Bulawayo now reports that several workers are being fired in separate but related incidents in a bid to dilute Finserve’s influence. Workers interviewed say those with shares are being targeted. In 1996 Finserve purchased Z$16 million shares courtesy of a loan from Intermarket Building Society. At the time this was a substantial amount of money. The agreement contained a clause that after 5 years these preferential shares would convert to ordinary Finhold shares. Finhold (Financial Holdings Ltd) is a shareholder in Zimbank. The Financial Trust of Zimbabwe owned by government however is the major shareholder.

Of major concern is that ever since the Supreme Court decided the workers share purchase was legal, Zimbank has not paid out any dividend to Finserve. Management at the bank is quoted in several other media as saying they have already set up an empowerment vehicle that is set to co-opt Finserve into its structure. Insiders however say bank bosses are not happy about having workers with a dual role both as employees and shareholders. Most of the workers championing Finserve’s interests are being fired or suspended from the bank.