GOVERNMENT owes CMED (Pvt) Ltd about $11 million, a situation that has further strained the operations of the already struggling parastatal.
BY TARISAI MANDIZHA BUSINESS REPORTER
CMED managing director Davison Mhaka told members of the Parliamentary Portfolio Committee on Transport and Infrastructural Development on a familiarisation tour of the parastatal’s Harare depot yesterday that different State departments owed the CMED through ministerial car rental, fuel and other services.
“Our main challenge is the management of debt by government . . . government is our biggest customer and currently we are owed $11 million,” Mhaka said.
Mhaka said presently most of CMED’s operations were being sustained by business from the private sector.
He added: “We find that while ministries might be willing to pay, there is nothing that is coming from the Treasury, but what is keeping us going is the private sector.”
He also said the department was owed $4,5 million by the Zimbabwe Electoral Commission for vehicles hired during last year’s constitutional referendum.
“Government is a good customer because it doesn’t get broke. We believe there is light at the end of the tunnel,” Mhaka said.
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The CMED boss said despite the challenges government always made an effort to pay at the end of every financial year.
Mhake said the CMED was forced to shut down three of its depots around the country due a depletion of its fleet and general lack of resources.
Presently, the CMED has 67 graders and a 734-vehicle fleet. Mhaka said the company was at an advanced stage of recapitalisation and intended to buy 60 units including graders and tippers, among many others.
Mhaka said the core business of CMED was to provide cost-effective and affordable transport to government ministries, departments, individuals and the private sector.
CMED hires out vehicles, heavy equipment, motorcycles and vessels to various arms of government and the general public.
It also sells fuel and does engine component reconditioning.
