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NewsDay

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RBZ survives yet another auction

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The High Court on Wednesday stopped the public auctioning of Reserve Bank of Zimbabwe (RBZ) farming equipment on behalf of unpaid suppliers who are owed $3,6 million for the implements. The equipment, which included cultivators, scotchcarts, knapsack sprayers and ploughs, was procured by the RBZ and meant for distribution to new farmers. Zanu PF has […]

The High Court on Wednesday stopped the public auctioning of Reserve Bank of Zimbabwe (RBZ) farming equipment on behalf of unpaid suppliers who are owed $3,6 million for the implements.

The equipment, which included cultivators, scotchcarts, knapsack sprayers and ploughs, was procured by the RBZ and meant for distribution to new farmers.

Zanu PF has debated the issue of the equipment over many months seeking the distribution of the equipment to beneficiaries perceived to be its supporters.

On Monday, the RBZ through its lawyer Munyaradzi Nzarayapenga, made an urgent court application seeking an interdict barring the auctioning of its assets by creditors arguing that the move would cripple the country as the bank was at the core of the economic well-being of Zimbabwe.

The matter has been set for hearing on Thursday at 3pm, before High Court judge Justice Nicholas Ndou.

The auction was scheduled to start on Wednesday, ending on Friday. The implements, which formed part of the RBZ mechanisation programme, have been lying idle at the National Railways of Zimbabwe courtyard in Bulawayo for the past four years.

The implements included 20 945 harrows, 54 planters, 1 639 cultivators, 1 516 scotch carts, 537 scotch carts boxes, two ploughs and 1 277 knapsack sprayers.

Zanu PF bigwigs in the Matabeleland region last year set up a committee to distribute the instruments reportedly to curry favour with the electorate with the former ruling party’s national chairman, Simon Khaya Moyo, accusing Finance minister Tendai Biti of stalling their distribution plans.

The central bank owes six companies more than $6 million. Most of these creditors managed to get writs of execution against the bank and have attached RBZ’s property to recover their dues.

Some of the suppliers include SeedCo Private Limited, Art Holdings, Lawrence Tamayi, Charter Properties (Pvt) (Ltd) and Farmtec Spare and Implements.

Meanwhile, the implements are slowly succumbing to the effects of weather with scotch carts now turning rusty while the paintwork on some of them has worn off due to exposure to the sun.

The wheels of the carts have also been deflated and the tyres are rotting.