Wilson Gwatiringa, National Indigenisation and Economic Empowerment Board (NIEEB) chief executive officer told journalists Tuesday the wide scale compliance audit will involve an indigenisation assessment rating of companies to determine the extent to which companies have complied with the law.
This comes as it emerged that companies that did not submit proposal will see their licences cancelled or asked to pay heavy fines.
“The investigations will be done in conjunction with an Indigenisation Compliance directorate set up by the ministry of Youth Development, Indigenisation and Empowerment and the Zimbabwe Republic Police to investigate, audit and where necessary recommend appropriate measures to enforce compliance with the indigenisation and empowerment legislation,” he said.
“Some of the serious consequences of non compliance include cancellation or suspension of operating licences as well as payment of hefty fines.”
Under the Indigenisation and Economic Empowerment Act, foreign companies operating Zimbabwe were given five years to allow locals to acquire a minimum of 51% shareholding.
Companies have to submit indigenisation proposals. The ministry of Youth Development, Indigenisation and Empowerment has given mining companies up to September 30 to submit proposals.