/ 9 September 1997

Zim presses pensions to invest in state firm

TUESDAY, 11.00AM:

THE Zimbabwean government is pressuring pension funds with more than R10-million in assets to invest 10% of them in African Resources Investment, a new company formed by the cabinet indigenisation committee.

Some fund managers have alleged government officials said they would use persuasion followed by force to get the funds to comply with the request. However, Mutumwa Mawere, special adviser to African Resources Investment, denied any directoive had been issued to pension funds.

Mawere said that at a recent meeting between government and business, the parties had agreed to co-operate. He said the Zimbabwean government wants institutions to facilitate black economic empowerment, but will not force pension funds to comply with the investment request. If money cannot be obtained from the pension funds, another way will be found to use money that pension funds have to invest in prescribed assets — which fall under government’s control — to promote black empowerment,” said Swana.

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