Govt shields AirZim

THE government has proposed a temporary reprieve for Air Zimbabwe to shield the debt-ridden national carrier from creditors as it searches for a new strategic partner, it has emerged.
Report by Bernard Mpofu

According to new amendments to the Finance Act, Air Zimbabwe creditors will not possess the airline’s assets until 2015.

This, according to the proposed law, would give Air Zimbabwe ample time to settle its debt.

Air Zimbabwe, which had been struggling to service domestic, regional and international debts until its resumption of flights to South Africa, has debts in excess of $150 million.

“In order to protect the assets of the Air Zimbabwe Corporation or its successor company from attachment by its creditors, it is proposed to extend to it the provisions of the State Liabilities Act (Chapter 22:13).”

However, this protection is only temporary to enable the corporation to repay its creditors in an orderly fashion and will expire on January 1 2015, reads the Finance Bill in part.

This comes as government indicated that Air Zimbabwe’s debts were discouraging new investment into the national carrier.

The government, which wholly owns Air Zimbabwe, said it was prepared to relinquish 74% shareholding to a new strategic partner.

The proposal is contrary to empowerment laws compelling foreign investors to cede controlling stakes in companies operating in Zimbabwe.

The airline has in recent months lost its market share to new and old airlines that have resumed flights to Zimbabwe.
Economic Planning and Investment Promotion minister Tapiwa Mashakada last month appealed to KLM Royal Dutch Airlines to partner Air Zimbabwe.

Mashakada made the plea at a function to mark the return of KLM to Zimbabwe after 13 years.

He said the government would support the new strategic partner even though they may exceed foreign investor threshold under the country’s equity laws.

Do you have a coronavirus story? You can email us on: news@alphamedia.co.zw


10 Comments

  1. This simply means that just beacause you are a Government company, you can neglect paying what you owe others knowing full well that Government will invoke some law / statutory instrument to protect you. this is not fair, it has happened at RBZ, now Air Zim, who is next Netone ? Pay up or close shop ! It is more painful when we all know how the airline went bankrupt. So basically it means senior Government officials can run down a state company, have it accumulate debt from private companies and to its employees and then declare that you cannot sue for your money ! Zvakaoma vasikana !

  2. Moral of the story?DO NOT PROVIDE GOODS AND SERVICES TO ANY GOVERNMENT ASSOCIATED ORGANISATION ON CREDIT.uNONYURA

  3. air zimbabwe is not failing because there is no business in the zimbabwe airline industry, it is failing because of mismanagement and looting

    correct this and it will be a beckon of excellence in how to run a state oeparted company

    1. Chris Gaza could you elaborate how air zimbabwe was looted that it was left in the lurch?? I for one would really appreciate to know what was stolen at the airline

      1. money $$$$$$$$$$$$$$$

  4. This is laser engraved warning and now law… into the mind of any supplier of credit (including employees paid in arrears) to a Zimbabwean agency.

    DONT DO IT!

    You will not be paid.

    Zimbabweans have yet again shot themselves straight through the heart.

    We are socialist- marxist…we have no need of your capital!!!

  5. This is exactly why this country needs an independent professional constitutional court. Such laws would be ruled unconstitutional. Clearly this proposed law is a gross violation of other citizen’s rights. So the government would rather have my small business feeding my family which is owed by this monstrosity of mismanagement close just to protect it???

  6. eric the money was taken

    1. How was it taken and by who??
      Why was the individual not prosecuted nor shamed??

  7. Of course Air Zimbabwe and its goings on are a boon for newmen. Government can not be serious about sinking more funds into the grave that is Air Zimbabwe when they are failing to get Essar and Greenfuels going..the government is either lying or they have just gone loco..Why would they want to soil their hands with this monstrous vulgarity or as some will say “mega vulgaris”. This airline is dead, it was buried eons ago, even its cleansing ceremony (kurova guva) was done, now why are we bothering ourselves with ‘demented ghosts’ pretending they are Air Zimbabwe? Might the great prophet Makandiwa exorcise this ghost to ensure that it stays buried..’yave ngozi here?’

Comments are closed.