CFI under intensifying shareholder scrutiny

CLOUDINE MATOLA

Publicly listed agro-industrial conglomerate CFI Holdings Limited is under intensifying shareholder scrutiny after fresh concerns emerged over its continued non-compliance with Zimbabwe Stock Exchange (ZSE) listing rules and the prolonged failure to appoint substantive top executives, including a chief executive officer and financial director, nearly a decade after key positions fell into acting hands.

At the company’s annual general meeting last week, shareholders openly challenged the board over what they described as a “governance vacuum,” warning that the absence of permanent leadership appointments, some stretching for as long as nine years, is eroding confidence at a critical juncture in the firm’s recovery.

The concerns come after auditors, Baker Tilly Chartered Accountants Zimbabwe, recently flagged CFI’s continued breach of listing requirements, despite the expiry of a five-year moratorium granted by the ZSE to regularise its position.

CFI’s troubles date back to January 2, 2018, when trading in its securities was suspended after it failed to meet free float thresholds and corporate governance standards. The suspension was lifted later that year after the ZSE accepted the company’s remediation plan, granting a five-year window to fully comply.

That grace period has since lapsed, but the issues remain unresolved.

“We continue to present ourselves here and deal with issues that are being given to us by people who are in acting capacity continuously. Can we not get to a point where we resolve these issues and people are actually representing our interests substantially? Nine years for people in acting capacity,” one shareholder said.

Another shareholder pressed further, questioning what tangible assurances the board could offer.

“Noted is not good enough. What am I taking to my own stakeholders today? I need substantive responses.”

The governance concerns cut deeper than executive titles. Investors argued that the failure to formalise leadership appointments undermines the company’s credibility, even as financial performance shows signs of recovery.

“I share similar sentiments… there is light at the end of the tunnel from the financial reports,” another shareholder said.

“But you give us more confidence if you demonstrate that you are on top of the situation. What challenges have prevented you from appointing substantive office holders, and how do you intend to resolve them?”

Calls were also made for broader boardroom depth, with investors urging the inclusion of diverse expertise, including legal and human resources competencies, to strengthen oversight and restore confidence.

In response, board chairperson Valerie Pasi acknowledged the concerns, attributing the delays to the company’s prolonged turnaround efforts.

“We have taken note of the concern, and we will look into it and see how best we can address the issue of the acting capacity of part of our executive team,” Pasi said.

“I think the company has been going through its challenges and we are on the mend… that has been the focus. But the point is taken. The company is performing, and this is something we can now seek to regularise.”

She added that with the business returning to profitability, the board would prioritise stabilising leadership structures.

The ZSE has already indicated that it conducts annual reviews on companies’ progress in addressing compliance gaps, raising the spectre of renewed regulatory pressure should CFI fail to act decisively.