Zim inter-parastatal debt stiffles all

HARARE -A number of parastatals are suffocating as a result of other State-owned companies’ failure to pay for services rendered and have approached Government for recourse, officials have said.

This has exposed them to serious operational challenges, particularly at a time when they are also being pursued by the Zimbabwe Revenue Authority (Zimra) that is demanding statutory fees from them.

Government is reportedly seized with mechanisms of resolving parastatal debt to free companies that are tottering on the brink of collapse.

Last week, Finance and Economic Development Minister Professor Mthuli Ncube told The Sunday Mail Business that Government was concerned over interparastatal debt. Minister Ncube could not be drawn into revealing the size of the interparastatal debt, saying he did not have the figures on his fingertips.

But information at hand shows that Air Zimbabwe owes large sums to a number of parastatals such as the Civil Aviation Authority of Zimbabwe (CAAZ) and the National Handling Services (NHS).

The companies are owed a combined US$68,8 million for services offered to Air Zimbabwe. CAAZ is owed US$44,8 million dating back to 2009 for the provision of airport and air navigation services, while NHS is also owed US$24 million for passenger and cargo handling.

The companies say the debts are negatively impacting on operations.

They are now pinning their hopes on getting their money from Air Zimbabwe administrator Reggie Saruchera.

NHS general manager Mr Godknows Marawanyika, recently told the Parliamentary Portfolio Committee on Transport and Infrastructure Development that: “Air Zimbabwe has not been consistent in its operations so the reconstruction has come up with a programme of action, which if followed would help turnaround the company.

“Because of the challenges they (Air Zimbabwe) have been facing, the company has not been paying its obligations and NHS is US$24 million.”

CAAZ chief executive officer Mr David Chaota said interparastatal debt was choking their operations.

Mr Chaota added that they are in negotiations with Zimra, which they also owe an unspecified amount.

“It’s an ongoing issue we have with Zimra to see how best the situation can be handled,” said Mr Chaota.