‘IDC LEGALLY OWNS SHARES IN STATE FIRMS’
IT IS absurd to suggest that the Zambia Forestry and Forest Industries Company (ZAFFICO) and other parastatal companies are illegally owned by the Industrial Development Corporation (IDC) when the corporation is wholly owned by the State, former Finance deputy minister Dan Pule has said. ZAFFICO has also rubbished reports that it was illegally owned by the IDC.
IT IS absurd to suggest that the Zambia Forestry and Forest Industries Company (ZAFFICO) and other parastatal companies are illegally owned by the Industrial Development Corporation (IDC) when the corporation is wholly owned by the State, former Finance deputy minister Dan Pule has said.
ZAFFICO has also rubbished reports that it was illegally owned by the IDC.
Dr Pule, who is a professional accountant said in an interview that IDC was a special purpose vehicle owned by the Ministry of Finance and was created for the sole purpose of holding shares on behalf of the ministry.
He said the minister of Finance was mandated to hold shares in state owned enterprisers through the IDC.
Dr Pule said the minister of Finance held 99 percent of shares in IDC, saying that there was nothing illegal about the
Corporation owning parastatal companies.
“IDC is a special purpose vehicle of the Ministry of Finance to hold shares on its behalf. So there is nothing illegal about IDC owning parastatals,” he said.
And ZAFFICO acting managing director, Manuel Mutale said the IDC holds the 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.
Mr Mutale said the Act makes it clear 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. He said in a statement that IDC owned 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 percent shares in IDC, while 0.01 percent is owned by the Secretary to the Treasury,” said Mr Mutale.
Mr Mutale said the reports making rounds in the media were based on an opinion by the Attorney General which had been taken out of context, with respect to an inquiry made by ZAFFICO on the legal process necessary for the successful listing of ZAFFICO.