By Gift Dube
HARARE – The bid by West Properties, a company partly owned by controversial land baron Kenneth Raydon Sharpe, to list on the Victoria Falls Stock Exchange (VFEX) is in doubt as four companies accuse the property developing company of breaching the Securities and Exchange Act.
Through their lawyers Mutumbwa Mugabe and Partners, Fairclot Investments, Coolfitch Investments, Glasswing Investments, Halinka Investments and businessman Georgios Katsimberis allege that WestProp failed to disclose the true extent of its legal battles, potentially breaching the Securities and Exchange Act.“Our clients believe, with good reason, that Appendix 3 has been deliberately crafted with very little detail in order to mislead.
Our clients believe further that certain crucial litigation with the potential to materially affect the value of the securities being registered has been omitted with the result (if not the aim) that potential investors are likely to be misled as to the true value of the securities being offered by the Issuer,” read part of the letter.
The companies are seeking the property developer’s listing to be barred and corrective measures be taken.
“We invite your good offices to take all measures to ensure that the integrity of the VFEX, and indeed any securities exchange in Zimbabwe is maintained. We believe that, that can only be possible if investors are given full access to all relevant and pertinent information regarding all securities listed or about to be so listed. Our clients believe that this was not done here and that if anything the listing must not be allowed to go ahead without corrective action having been taken.
“It would be a dereliction of the duty to offer high levels of investor protection, confidence and trust if questions around the integrity of the information provided in support of a floatation were not investigated.
Particularly where such questions raised the very real impression of market manipulation and financial crime.” said Mutumbwa Mugabe and partners.
