The Zambia Forestry and Forest Industries Company (ZAFFICO) has dismissed media reports suggesting that the Industrial Development Corporation (IDC) illegally owns ZAFFICO.

In a statement to Phoenix News, Zaffico Acting Managing Director Manuel Mutale says the media reports are allegedly based on an opinion by the Attorney General Likando Kalaluka which has been taken out of context, with respect to an inquiry made by ZAFFICO on the legal process necessary for the successful listing of ZAFFICO.

Mr mutable explains that the position that the attorney general communicated to ZAFFICO on the matter is that IDC holds 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 which 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 further explains that IDC owns the shares of ZAFFICO and indeed all other state-owned enterprises (SEOS) on behalf of the Minister of Finance further stating the Minister of Finance owns 99.9% shares in IDC, while 0.01% is owned by the secretary to the treasury.

Further, Mr Mutale has indicated that the specific resolutions relating to the listing of ZAFFICO requires that the resolution be that of the Minister of Finance and he issued his written approval of the listing of ZAFFICO Limited on 5th November 2019.

PHOENIX NEWS