Published: 11 February 2014

Government will soon crack the whip on foreign firms fronting locals to register as indigenous companies in order to continue operating in the reserved sectors of the economy, a senior government official has said.

Secretary for Youth, Indigenisation and Economic Empowerment George Magosvongwe warned that it was a punishable criminal offence for any individual or company to misrepresent to the ministry for the purposes of operating in the reserved sectors.

He added that there were various cases where foreigners were fronting locals as owners of entities in the reserved sectors, a move that was punishable by a fine or imprisonment for a period not exceeding five years or both.

Magosvongwe was speaking at the Parliamentary Portfolio Committee on Indigenisation and Empowerment meeting recently.
- newsday

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