eBusiness Weekly
Labour Ministry officer finds dismissal justified as dispute resolved
The Zimbabwe Stock Exchange has fired its controversial chief executive Alban Chirume, ending a protracted dispute finally resolved by the Ministry of Labour and Social Welfare, which upheld his dismissal.
The ZSE in February sent Chirume on forced leave and subsequently suspended him after laying various charges including un-procedural and unethical conduct allegedly committed by him over a period of time. He was suspended without pay.
Initially, the ZSE sacked Chirume in June, but after protracted disagreements the matter was brought before a determining officer at the Ministry of Labour and Social Welfare under the agreement of both parties.
The matter was only finalised last week when the determination officer from the labour ministry found justification in his dismissal. He is said to have been served with his dismissal papers last week. At the time of his dismissal, Chirume faced over ten charges committed over a long period. Part of the charges were added as the feud went on.
As first reported by our sister paper The Herald, the ZSE sent Chirume on forced leave pending investigations mainly emanating from the debacle into Econet Wireless’s $130 million rights issue, which exposed the disconnect between the exchange’s board and its CEO. The disconnect saw Econet glide over a regulatory directive. However, cases against Chirume have been building up and The Herald Business has been at the forefront in exposing some of them.
Well-placed sources say the issue of Econet was just a trigger as Chirume already had pending cases, which the board was looking into. As previously reported by this publication, Chirume was allegedly at fault when Meikles was un-procedurally suspended from the ZSE.
Among some of his transgressions were the issue about of how Chirume terminated the website contract with local company Big Law and cases where he is alleged to have overrode the regulator and the board. ZSE board chairman Caroline Sandura confirmed the exchange had terminated its four-year affair with Chirume, which turned sour in its last stretch.
“I confirm that Alban Chirume is no longer with us. The determination of the hearing officer concluded that the ZSE should part ways with Chirume and that formed the basis of our decision to part ways with him,” Sandura said in a telephone interview. The ZSE is now seeking to recover its assets (motor vehicle and laptop) from Chirume at the courts.
Market reports also say that the former ZSE boss, among his shortcomings, failed to meet targets set by the board, repeatedly submitted reports late to the board as well as ignored queries from the board. Chirume is also allegedly incurred high expenditures and made several decisions without consulting the board. There are many other ‘incidents’ where his capabilities as leader was questioned including claims that he illegally recorded board meetings and certain conversations without the knowledge of the board.
The ZSE will now have to look for another chief executive who will steer the exchange at a time when foreigners are deserting it and companies are delisting. There is consensus among certain sections of the capital markers that Chirume brought more chaos than development to the exchange describing his appointment as an error.
Last year, the ZSE reported a loss of $1, 19 million from $1,1 million recorded in 2015.
