The Zimbabwe Stock Exchange has suspended Meikles Limited from trading with effect from today.
The bourse announced without immediately giving reasons for the suspension. However, sources have said the move is meant to pave way for the ZSE to seek clarification on the hotel group’s latest financials.
There have been reports that the group published erroneous information with regards the Reserve Bank of Zimbabwe debt.
Meikles reported a $2,8 million loss for the half-year ended September 30 2014 and said it was owed about $90 million by the central bank, a debt which had accrued over the years from as far back as 1998.
But Bikita West legislator, Munyaradzi Kereke, and former advisor to then central bank Governor Gideon Gono accused the group inflating figures with the intention of manipulating its price on the stock market.
In a parliamentary portfolio committee meeting recently, Kereke said the RBZ debt to Meikles stood at $34,1 million as at December 2008 and could not have ballooned to $90 million as Meikles had stated in its financials.
“Meikles published completely erroneous information (whose) implications are far much more in the financial system than just the numbers.
“They created a stock exchange bubble which is tantamount to fraud. When you artificially present falsehoods on the stock exchange you uplift the stock price or keep it where it is when in effect it was supposed to fall. The stock exchange has been tampered with,” he said.
Questions sent to Meikles had not been responded to by the time of publishing.