Air Zim bailout, unnecessary burden on tax payers

Parastatals have been a huge let down when it comes to managing their affairs.
Most of them always have their hands stretched out for a Government bailout, only to run huge losses the following financial year.
It is no secret that there is gross mismanagement.
Even with a huge capital injection, there is no guarantee of a turnaround.
It is, however, not surprising that Government would always come to their rescue just as cabinet endorsed debt assumption of Air Zimbabwe Holdings (Private) Ltd and Air Zimbabwe (Private) Limited currently under a Reconstruction Order to stay all legal action, attachment and rescue the national airline.
“Owing to the strategic nature of the national airline, Cabinet resolved to assume the debt as well as the extension of the Air Zimbabwe Reconstruction period to 30 June 2021,” said Minister of Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa during Tuesday’s post-Cabinet briefing.
“The reconstruction will provide for the payment of creditors as well as return the airline to profitability.”
These are statements Zimbabweans are now used to, together with the perceived importance of Air Zimbabwe, which Government often reiterates.
This is the importance they stress on the many times they come to the national airline’s rescue, only to sink back into debt.
It is irrational for a broke man to assume another’s debts, something that is always happening with the Zimbabwean Government.
Already the country’s external debt sits at over US$12 billion, which is owed to various lenders around the world. Oftentimes the lenders have advised Government to reform its financial management.
There have been calls to privatise most of the parastatals but Government seems to always be happy to keep their dead weight around hoping for some miraculous turn around.
Though the terms of the bailout are not yet reviewed, it is likely that they will not safeguard against another debt accumulation.
Again, Government will assume it, adding more strain on taxpayers.
It is high time Government put its house in order, otherwise, the next generations will inherit debt of money wasted on dead institutions.
In this case, where are the creditor statements indicating balances, disbursements made, payments effected and dates of the foregoing, principal amount of the claim and the interest or court judgment which act as proof of evidence for all claims? Who is the money owed to?
In 2015, Government again assumed The Reserve Bank of Zimbabwe’s US$1.4 billion debt.
The RBZ had accrued unnecessary debts before December 31, 2008 as the central bank engaged in quasi-fiscal operations. The taxpayer is overburdened. Right now Finance Mthuli Ncube’s plans in the new budget is tax us some more.
Does this Government have the people at heart at all? Nhau/Indaba

About admin

Check Also

Education Ministry Halts Vacation School For April Holidays

by Judith Matanire The Ministry of Primary and Secondary Education in Zimbabwe has announced the …

Leave a Reply

Your email address will not be published. Required fields are marked *