Meikles Suspended from the ZSE

HARARE, Meikles has been suspended from trading on the ZSE with effect from today (16/02/2015). The ZSE says the conglomerate group has been suspended pending clarifications from their latest financials.

One particular highlight from the full year financials to March 2014 was the surge in the groups’ attributable income to $37,000,000 from $3,000,000 after realizing $48,800,000 in non trading income.

The non trading income was in the form of treasury bills issued by the RBZ as part of a debt repayment. The company was last quoted as saying the apex bank owes $87,2m before the first TB issuance.

However circumstances around the debt have generated intense debate from the August house to the company’s AGMs.

Earlier in February legislator Munyaradzi Kereke accused Meikles of overstating the debt with the intention of manipulating its share price.

Kereke, a former advisor to the then central bank governor Gideon Gono, who now sits on Parliament’s committee of finance and economic planning said the RBZ debt to Meikles stood at $34,1 million as at December 2008 and could not have ballooned to $90 million, which Meikles published in its 2013 and 2014 results.