Emmanuel Fundira, the National Social Security Authority (NSSA) chairman, and former Rainbow Tourism Group (RTG) executive Paula January are accused of plotting to devalue RTG’s shares to buy them at a lower price.
As reported by <a href="https://thenewshawks.com/nssa-chairman-embroiled-in-underhand-rtg-takeover-bid/">The NewsHawks</a>, NSSA, which holds a 91.6% stake in RTG, plans to sell 56% of its shares, and Fundira is believed to be creating negative market sentiment to drive down the stock price.
Fundira, also involved in hospitality through African Sun and other ventures, is said to be in conflict due to his interests in both Nssa and RTG.
Despite an agreement not to engage in hospitality affairs, he is allegedly influencing events at RTG to support his personal interests.
The Zimbabwe Anti-Corruption Commission (ZACC) has launched an investigation into RTG’s executives, focusing on payments in salaries, gratuities, allowances and bonuses, and the agency has issued a warrant to seize documents.
RTG denies any wrongdoing, claiming the investigation is politically motivated.
Fundira, appointed NSSA chairman in 2023, is accused of manipulating the situation to lower RTG’s share price, allowing him and his allies to purchase shares at a discounted rate.
He is also accused of leaking information to Paula January, which she allegedly passed on to ZACC to settle personal scores.
ZACC investigators have reportedly kept Paula January informed about their probe, including sending her updates via WhatsApp during meetings with RTG board members.
However, Fundira denied the allegations when speaking to The NewsHawks, saying he has no working relationship with Paula January and dismissing claims of manipulating RTG’s share price for personal gain. He said:
<blockquote>
The true position is that I do not have any working relationship with so-called Paula January (whoever she is) nor do I have access to RTG financial information in as much as RTG is a subsidiary of NSSA of which I am a NED (non-executive director) and chairman.
It is however common cause that RTG have a reporting line to the executive at NSSA as a subsidiary and that as a public-listed entity they have their own board chaired by Mr Douglas Hoto.
</blockquote>
Paula January also denied knowing Fundira and claimed that the audio leaks, which allegedly showed frequent contact between them, were doctored. She said:
<blockquote>
Unfortunately, I don’t do voice notes after my past experiences with RTG. We are living in the times of technology and things can be doctored.
I moved on with my life and I have been here in Malawi for four years. I actually wish RTG well and by the way, who is Fundira and what does he do at RTG?
</blockquote>
In response to The NewsHawks‘ questions, RTG acknowledged the role of ZACC in fighting corruption but said it was challenging the search and seizure warrant. The company argued that seizing payroll and employee contracts could not prove the charge of money laundering.
RTG argued that stock exchanges worldwide are designed to be secure investment platforms, regularly audited and overseen by multiple regulatory bodies to ensure transparency and compliance.
RTG pointed out that during the period of interest, its activities had been reviewed by several entities, including the Reserve Bank of Zimbabwe (RBZ) and the National Economic Conduct Inspectorate (NECI), Zimbabwe Revenue Authority (Zimra), Financial Intelligence Unit (FIU) and external auditors.

Pindula News

NSSA Chairman, Emmanuel Fundira, and ex-RTG executive Paula January are accused of trying to take over RTG by lowering its share prices. Fundira, who works at NSSA and African Sun, is said to be causing a drop in RTG's stock price to benefit himself. ZACC is investigating RTG for alleged corruption related to salaries and bonuses. Fundira denies the accusations. RTG disputes the claims and says they are politically motivated. They argue that their activities are reviewed by various regulatory bodies. Paula January also denies any involvement with Fundira and claims that evidence against her is doctored.

NSSA Chairman And Ex-RTG Executive Accused of Plotting Underhand RTG Takeover Bid

Rainbow Tourism Group (RTG) is refurbishing the Rainbow Towers Hotel and the Harare International Conference Centre (HICC) ahead of SADC meetings.
As reported by <a href="https://businesstimes.co.zw/rtg-revamps-rainbow-hotel-ahead-of-sadc-meetings/">Business Times</a>, the 4 500-seater HICC at the Rainbow Towers Hotel will host the SADC Industrialisation week from July 28 to August 2, 2024.
The investment conference, which will precede the Council of Ministers meetings and the SADC summit, is expected to attract at least 300 guests and 150 companies.
The Council of Ministers meetings and the SADC summit will take place from August 9 to 18, 2024 at the new Parliament Building in Mt Hampden.
The Government of Zimbabwe, which owns the majority stake in RTG through the National Social Security Authority and the Ministry of Tourism and Hospitality Industry, has selected the hotel to host the SADC meetings.
Tendai Madziwanyika, the group CEO of RTG said they were re-fashioning 183 guest rooms and had installed two brand-new, state-of-the-art elevators at the Rainbow Towers Hotel in Harare.
He said the Presidential suite at the hotel was completed in the fourth quarter of last year, adding that renovation work is underway to convert the remaining 72 rooms into a combination of six diplomatic suites and 48 standard guest rooms.
Speaking at the company’s annual general meeting held in Harare this week, Madziwanyika said the makeover of all rooms at the Rainbow Towers Hotel and the HICC will be complete by mid-July. He said:
<blockquote>
We will do it in time for the SADC Industrialisation Conference. We are doing something incredible.
We took out all the chairs on the ground floor. We took out the carpet from the ground floor. Why?
Because for the first time since it was built 40 years ago, we are now going to put brand new carpets and chairs in the HICC.
You see, this is what we’ll do for now. We will do the ground floor because we have a very good event coming up, I think it’s on the 9th and 10th of July for about three or four days.
After that, we will close again. Why? Because we want to do the rest of the HICC. The whole of the HICC will have brand new carpets and brand new chairs, come end of July this year.
</blockquote>
Madziwanyika stated in a trading update for the first five months of 2024 that RTG has sustained positive performance.
Revenue for the group grew by 75% in the period under review while occupancy rates across the hotel portfolio averaged 60%, while the Revenue Per Available Room (RevPAR) grew by 128% to US$58. He said:
<blockquote>
We are pleased to report that RTG has sustained its positive trajectory, delivering solid results in the midst of a turbulent economic landscape.
Our ability to adapt quickly, optimize efficiency, and focus on delivering exceptional customer experiences has been key to our success.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

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