22 investors eye struggling Zupco

LOCAL Government minister July Moyo yesterday told Parliament that 22 investors from local and abroad had expressed interest in struggling State-owned transport operator, Zimbabwe United Passenger Company (Zupco) as government steps up selling off its loss-making companies.

BY VENERANDA LANGA

Moyo was speaking before the Parliamentary Portfolio Committee on Local Government on the strategy to turn around Zupco.

Buhera South MP Joseph Chinotimba (Zanu PF) said privatisation of the transport operator must be implemented carefully in order to stop political bigwigs from taking over the company and further destroying it.

“Zupco is an area where business, labour, and government are interested to ensure that public transport is consistent, and we have looked at the Chinese, Scandinavian, and British models, where privatisation of public transport was disastrous and expensive,” Moyo said.

“We ended up deciding to go for partial privatisation of Zupco to get some investors, and already, 22 potential investors — both local and international — are interested in coming in because they know that this is big business,” he said.

Moyo said government should consider warehousing the $16,1 million Zupco debt in order to ensure that the partial privatisation process succeeds, given that government has got shares in Zupco.

“Partial privatisation will give us a chance to see how Zupco can be best run. We know that when Zupco is fully operating, we will have a lot of problems because there are vested interests in mushikashikas and kombis, but as of now, government has taken a decision to (partially) privatise,” Moyo said.

He said it was important for Zupco to downsize its staff, as it had a complement of 351 staff against 56 buses.

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10 Comments

  1. Now the debt of carrying Zanu supporters to the airport and rallies will be paid for by the tax payer, and you call this new dispensetion

    1. this is where anti corruption must start, people always ignore real corruption and concentrate on minor things like ZIMDEF. Yet where there is serious corruption no one is focusing on it. People like like Bright Matonga must be held accountable to what happened at ZUPCO. large amounts of money are unaccounted for in companies like ZUPCO, NRZ and zisco. at least ZIMDEF is functioning better than these organizations that were meant to operate at a profit.

  2. 351 staff and 56 buses, yoo, how many people per bus?

  3. They must first and foremost explain what has happened to all the busses they imported – 300 odd I believe!!! CORRUPTION, INCOMPETANCE

  4. 56 buses left. How many were they in 1980 and what later happened to them so that it becomes a case study of whether to support state enterprises. Remaining Nrz trokes are right now being destroyed into srcape and not even one is being built. Ministers are running down Hwange. No one is talking about diamonds and platinum. Which funeral should we attend first.

  5. sell Zupco finsh, honestly who can buy a company with such a huge debt.
    in my view companies like the Zisco, zupco, willovale mazda, etc should be in should be in private hands, the benefits are much great.

  6. Corruption should be dealt with at all levels

  7. Who in their right minds would want to go into a joint venture with a corrupt rust bucket company like Zupco. Here is a golden opportunity to set the bar for reviving Govt owned companies.
    Firstly lay-off the entire staff compliment and then immediately re-employ all those who were not involved in corruption. Every body knows who they are from the conductors to CEO’s.
    Secondly prosecute the likes of Matonga and enforce repayment of stolen funds.
    Thirdly engage with a partner who has a proven track record in public transport and not somebody who is partisan and just wants to jump on a band-wagon.

  8. The Chairperson at one time was 1. VC at Chinhoyi University of Technology, 2. Chairman of the Kariba Town Council. Chombo’s deployees

  9. Dizi izle – HD Diziler, Diziizle.net

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