Govt props up AirZim

TREASURY injected close to $1,8 million into the embattled national carrier Air Zimbabwe (AirZim) between July and August as it struggles to stay afloat, official figures have shown.

Report by Mernat Mafirakurewa

The Accountant General’s Department consolidated statement of financial performance for the two months showed that $1,5 million was injected into the airline in July.

The amount was double the budgeted $650 000, according to statistics.
In August, $260 000 was extended to AirZim in the form of a loan against a Budget of $1,4 million.

Despite the injection and unbundling of the entity into Air Zimbabwe and National Handling Services, the airline remains largely inactive to a limited extent, servicing domestic routes.

The airline has been operating on a deficit since 1994, but the inception of the multi-currency system worsened the situation.
AirZim with an estimated debt of over $100 million, was early this year forced to terminate international and regional flights to avoid its planes being impounded by creditors.

The statement of accounts showed that the government advanced $1 million in the form of a loan to the Civil Aviation Authority of Zimbabwe (CAAZ).

CAAZ chief executive officer David Chawota last week said the authority was in the process of upgrading Harare International Airport, Joshua Mqabuko Airport in Bulawayo and Victoria Falls Airport.

Harare International Airport, with a capacity of handling 2,5 million visitors annually, was currently operating at 20%.
Power utility Zesa was advanced $4 million against a budgeted $3 million.

The total expenditure by Treasury in July at $287,4 million was higher than the budgeted $271,1 million.

The government advanced $6,4 million to the Grain Marketing Board (GMB) in August.

It is understood that funds advanced to GMB could have been meant for the preparation of the new cropping season.

AirZim and GMB were among 10 State-owned enterprises that had been earmarked for the first phase of privatisation and commercialisation as the government moved to wean off its heavily-indebted entities.

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10 Comments

  1. What I fail to understand with these parastatals is what is really wrong. Is it the appointed boards that fail to articulate policy or the management that fail to implement? Or perhaps the employees that do as they please? Or probably the shareholder who vacillates (for lack of a better word)? The problem lies deeper than the eye can see. This probably mirrors what actually happens in the governement. The only reason why this government continues to earn is because revenue comes from taxes, royalties, duties and other penalties. I think as a country we will continue to see standards falling day by day whilst we are only told that “sanctions” are hurting the damn economy. Do our politicians understand economics to be able to run this country successfully and to proseperity. I have so many questions that will never be answered in my life time – I guess. God help the unemployed lazy future generation.

  2. This Zimbabwe bird has a broken wing.

    1. @Hacha Ndizvo- How sad the bird broke its wings eons back and because it could not feed itself, so we buried it. Now it appears it has risen like the proverbial phoenix to fly again…now unlike the phoenix it has no wings. Why not be kind to it and pile more earth on it to make sure that it stays buried rather than torture it in this manner? Could it someone who has been using it as a gold mine can not stand the idea of having it closed. This decision has absolutely nothing to do with good commercial sense.

  3. people start corporations. pipo run down corporations.Air Zim was started by people, then pipo took over and they ran it into the ground. Pipo comprises all two legged creatures with fat bellies, humped neck backs, narrow isthmuses, corrupt, greedy, selfish, vulturish on -the -loose, unrepentent and brainless heads. You gotta be careful not to entertain them. They are found at Mtapa building these creatures. And they sit in the building opposite Africa Unity Square along third street, just besides the Anglican Cathedral.Dangerous carnivores-or since they prey on parastatals to which they are parents, can we say they are carnibals? Nomatter how much money anybody seeds into parastatals, pipo will flock down from Mtapa Building,sit down in the red roofed building and parcel out between them, that parastatal. When you see them conveneing into the red roofed building, woe betides another parastatal. Like Bismack and his crew partitioning africa,or a butchering committee pipo can decide which parastatal has more milk and how best to chain it down and milk it until its udder bleeds. NRZ, GMB, ZISCO STEEL, AIR ZIM, Willowvale Mazda MI, ARDA,PTC , ZUPCO, and whatever! Say which of these never sat on its bottoms? You think pipo had nothing to do with it?Pipo! Shame. Zimbabwe has plenty more pipo than people. They see vibrant businesses, they run them down. They see green farms, they raze them to the ground, they see profitable banks, they castrate their ego with hyperinflation.They see rainy regions, they change them into wildernesses, they see diamonds, they grab them all. Pipo!Pipo!Pipo!

    1. Shuwa nyanisi!!!(Sure as onions?)

  4. pafamba Kadzura hapararame,zvake ndezvehuku not flying birds

  5. Air Zim needs to be serious because it is quite evident kuti the zimbabwe market is lucrative thats why you see all these airlines flocking in. Air Zim cannot see this for some odd reason. Kusiya donje richiwora mumunda.

  6. All the money that has been pumped into Air Zim is to facilitate Matibili’s trips. How come Matibili managed to fly twice to Dubai and a number of other destinations when Air Zim planes are supposed to be grounded.

  7. Mandlenkosi Mahali

    Very sad that that our money is being abused. Are we subsidising this para or what, can someone tell me. Wrong priorities by our government, do we really need air Zim if we keep on funding it? or its just for pride and looters to line thier pockets. Mtibili in politics very sharp but deadwood in economy management. We dont needairZim, lets use others if we can not operate ours profitable or at laest at breakeven.

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