Stock market seized with Meikles CEO dismissal ami...

Stock market seized with Meikles CEO dismissal amid damning allegations

Nyashadzashe Ndoro

Chief Reporter

Meikles Limited, a leading hospitality and retail company listed on the Zimbabwe Stock Exchange, has formally notified the exchange of its decision to terminate the services of its Chief Executive Officer, Malcolm Mycroft.

The notification, made in accordance with the ZSE's listing requirements and relevant laws, including the Companies and Other Business Entities Act (Chapter 24:31) and the Securities and Exchange (ZSE Listing Requirements), aims to ensure transparency and maintain investor confidence.

A source close to the developments confirmed that Meikles Limited last week sent a letter to ZSE notifying it about the change in leadership.

"This notification is in line with the ZSE's listing requirements and relevant laws, ensuring transparency and maintaining investor confidence," the source stated.

"The board's decision to terminate Mycroft's contract was made to protect the company's interests and restore governance standards."

Mycroft's termination follows allegations of unilateral decision-making, salary irregularities, and money laundering. Sources close to the development revealed that Mycroft had signed a critical agreement without the board's knowledge or approval, compromising the company's interests.

The board's decision to fire Mycroft is seen as a step towards rectifying the damage and restoring transparency. Additionally, Pick n Pay South Africa, TM Supermarkets' partner, is expected to scrutinise Mycroft's actions to ensure their standards of integrity and accountability are upheld.

He remains TM Supermarkets General Manager until Pick n Pay South Africa determines his fate.

Insiders also alleged that Mycroft and Walter Stephens, a senior buyer, received exorbitant salaries, while local staff were paid substantially lower. The employees have since engaged the National Economic Conduct Inspectorate to investigate the issues.

Mycroft has allegedly been receiving more than US$20 000 salary, sparking concerns about potential foreign currency externalisation and looting.

Meikles Limited company secretary Thabani Mpofu neither confirmed nor denied the latest development, saying that the company adhered to regulatory guidelines.

"Meikles Limited is dedicated to upholding the principles of transparency, accountability, and good corporate governance," Mpofu said.

"We acknowledge the recent speculation and assure our stakeholders that we are committed to making timely and accurate disclosures in accordance with regulatory requirements. Our focus remains on delivering value to our shareholders and maintaining the trust of our stakeholders.

Research by this publication revealed that when a company listed on the ZSE decides to fire its CEO, it is required to notify the stock exchange. This is because such a change in leadership can significantly impact the company's operations and investor confidence.

The ZSE has specific listing requirements that mandate listed companies to disclose material information, including changes in executive management, to ensure transparency and investor protection. This includes notifying the exchange about the termination or appointment of a CEO.