THE Zimbabwe Stock Exchange board has decided against reinstating suspended chief executive Mr Emmanuel Munyukwi. The ZSE boss has been on suspension without benefits over the past five months pending a hearing into allegations of misconduct. ZSE acting board chairperson Mrs Eve Gadzikwa could not be reached for a comment yesterday as her phone went unanswered while Mr Munyukwi was unreachable on his mobile phone.
But Securities and Exchanges Commission of Zimbabwe chief executive Mr Tafadzwa Chinamo said while he was not privy to the finer details (of the case) he was told Mr Munyukwi would not be reinstated.
The SECZ regulates trade in securities, as well as the operations of all exchanges and capital markets.
“Indications are that, whatever the outcome (of the hearing) he will not be coming back. It is highly unlikely. From what I was told, he is not coming back,” said Mr Chinamo.
He said he was not privy to the charges, except that he was being charged with misconduct.
Discussions held last week are understood to have centred on the CEO’s exit package. Mr Munyukwi has been at the helm of the ZSE since 2001.
Mr Munyukwi would most likely leave office before he completes the demutualisation of the ZSE.
Full demutualisation of the ZSE is pending although the bourse has been registered as a private limited company.
Demutualisation refers to a process by which a mutual organisation or company is transformed into a publicly traded firm.
A mutual company is one that is owned and used by members for their benefit.
After demutualisation, members give up their rights and take up shares in the private company, which the former members may then trade in.
After this, the ZSE, in conjunction with the Securities and Exchanges Commission of Zimbabwe, planned to introduce an electronic trading system known as the Central Securities Depository to allow for paperless trading.
THE CSD is a modern and advanced way of securities trading which would enable recording of transactions through an electronic book entry system.
SECZ has already contracted a private company to develop a framework for the establishment of the electronic securities trading platform.
Under the terms of the shareholding agreement for the CSD State-owned ZB Financial Holdings has 13 percent, National Social Security Authority 13 percent and Infrastructure Development Bank of Zimbabwe 10 percent stake.
The ZSE is made up of 75 active counters. Three counters have suspended trade in their shares. The broader vision is for the ZSE to be a member of the Federation of World Exchanges, which requires members to scrap physical trading in shares and physical certificates.
The FWE is an international organisation based in France and handles business policy issues affecting stock exchanges.
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