Nssa and RTG Directors to Address Alleged Takeover Plot

The National Social Security Authority (Nssa) and Rainbow Tourism Group (RTG) directors and executives are scheduled to meet today to discuss an alleged scheme aimed at taking over RTG by manipulating its internal affairs and stock price to lower its market value.

According to sources from the Public Service, Labour, and Social Welfare Ministry, the meeting will bring together board members and senior managers from both entities. The agenda includes addressing concerns over a covert attempt to acquire RTG shares at an undervalued price by creating instability within the company and leveraging stock market fluctuations to facilitate a low-cost takeover.

This development follows revelations that Nssa chairman Emmanuel Fundira has been strategizing to acquire RTG shares at a reduced price. The authorities have since intervened to prevent what is being perceived as a calculated corporate raid. Public Service Minister Edgar Moyo, who has been monitoring the situation closely, acknowledged the issue after an investigative report by NewsHawks exposed the alleged scheme.

According to NewsHawks, Fundira has been working with former RTG executive Paula January and business associates to gain control of the hospitality company through a planned share acquisition strategy. Although both individuals denied any involvement, evidence—including documents and audio recordings—reportedly suggests otherwise.

As part of their efforts, they allegedly reported RTG executives to the Zimbabwe Anti-Corruption Commission (Zacc) over their remuneration packages to create internal disruptions, which would lead to a decline in the company’s stock price and enable cheap share purchases.

Nssa, the majority shareholder in RTG with a 91.6% stake, is gradually offloading 56% of its shares. However, concerns have been raised that certain individuals are attempting to manipulate share prices to acquire them at a lower cost. NewsHawks reports that Fundira and January have used insider knowledge to position themselves ahead of the planned share disposal.

Further evidence from NewsHawks includes audio recordings in which January allegedly discussed the impending Zacc investigation before it was officially launched. She also claimed to have access to confidential financial records, including salaries and bonuses of RTG executives.

January resigned from RTG abruptly following an internal investigation related to a child drowning incident at Kadoma Hotel and Conference Centre in 2019, where she was general manager.

The exposé has forced Fundira into damage control, as he has been attempting to engage with Minister Moyo and executives from Nssa and RTG to mitigate the fallout. Ministry insiders say today’s meeting is a crisis management effort aimed at resolving the issue while ensuring the alleged takeover attempt is halted.

Minister Moyo, who recently assumed his role, stated that he is closely monitoring the developments but does not intend to rush into any decisions.

Fundira’s involvement in the hospitality sector raises further concerns about a conflict of interest. As the former chair of African Sun—a competitor to RTG—and the current chairman of Nssa, he had agreed not to interfere in Nssa’s tourism-related matters. However, NewsHawks reports that he has continued to engage in activities linked to RTG, allegedly in violation of that agreement.

Additionally, Zacc has launched an investigation into RTG executives over alleged financial misconduct, including salary payments and allowances. The company is cooperating but views the probe as an attempt to create instability and devalue its stock.

Market analysts suggest that Fundira and January’s actions were designed to depress RTG’s share value, making it easier for them to acquire shares at a lower price. This kind of stock manipulation is illegal in Zimbabwe and other jurisdictions, yet corporate raiders continue to find ways to execute similar strategies.

Nssa has investments across various sectors, including banking, real estate, finance, and hospitality. Fundira’s leadership coincided with RTG’s expansion efforts, including the planned acquisition of Montclaire Hotel in Nyanga. However, Nssa’s financial support for this project has reportedly been delayed, further raising concerns about external interference.

Given Fundira’s interests in the tourism industry, the Office of the President and Cabinet explicitly prohibited him from engaging in any Nssa-related hospitality affairs, as outlined in his appointment letter dated August 21, 2023. Despite this restriction, NewsHawks claims that leaked audio suggests he has been providing January with sensitive company information.

The situation continues to unfold, with today’s high-level meeting expected to address these concerns and determine the way forward.

(Article based on reporting by NewsHawks.)