Old Mutual has to defend investment in Zimbabwe Herald
It was not about a political consideration, but sought to make a profits for its shareholders
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Following calls for Old Mutual insurance giant to disinvest from a
newspaper owned by Robert Mugabe's government in Zimbabwe, the group defended
its right to own shares in the publication.
Old Mutual said that its investments were not dictated by political
considerations, and instead the group sought to make profits for its
shareholders.
"Our investments are made for the benefit of our policyholders, meant to meet
needs and expectations in terms of return and not contingent upon political
consideration said Luke Ngwerume, the Chief Executive of Old Mutual in Zimbabwe
in a statement.
Ngwerume said that disinvestment from major assets would have adverse
consequences for the group's policyholders in the long run.
Old Mutual has been accused of "directly supporting the Mugabe regime" by a
number of groups, the most prominent being the Cape group, Passop, which fights
for human rights.
Passop said that Old Mutual was the second largest shareholder in the Herald,
a publication which, according to the group, was used by Mugabe to promote one
of "the most infamously corrupt and brutal governments of the last decade."
Passop asked rhetorically whether Old Mutual invested in Nazi Germany as
well. "Their investment is a pact with the devil," said the group.
However, Old Mutual in Zimbabwe was adamant that it took its responsibilities
very seriously by managing the savings of over one million Zimbabweans.
"It is just one of a number of assets in the Zimpapers Group," said Old
Mutual, "in which we are invested, and represents our exposure to the very
limited print and media industry. "
"Zimbabwe is the only substantial print and media asset that is available to
policyholders in terms of exposure to that sector," said the group.
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