Transport Minister says Air Zimbabwe’s accounts were last audited in 2009, debt now at $323 million

Transport Minister Joram Gumbo told Parliament yesterday that the national airline Air Zimbabwe’s audited accounts were last presented in 2009 but he has now directed the Board and management to update their financial reports by the end of this year.

He said the national airline had a debt of $323 million at the end of last year and there was no way the government could revive the airline except through looking for a strategic partner.

Gumbo said the airline had already engaged BDO Accounting firm to help with its books.

Management accounts were now up to date.

The 2010 accounts were complete and awaiting finalisation by auditors while the remaining accounts should be completed b the end of 2017.

“Air Zimbabwe is in urgent need of recapitalisation to start sustainable operations,” Gumbo said. 

“As already alluded to, it had a debt overhang of US$323 million as at 31st December, 2016. 

“Given the prevailing demands on the fiscus, it is not conceivable that at the present moment Government can inject the required capital into Air Zimbabwe, hence the need for engagement of a strategic partner. 

“Recapitalisation of the airline will enable it to contribute positively towards both tourism and economic growth.

“A strategic partnership increases scope for capacity development through acquisition of new fleet, skills transfer, marketing of trade and business opportunities for the country and boosts tourism potential. 

“Government has recently approved the engagement of a strategic partner for our National Airline.  The process has started in earnest and my Ministry is committed to the exercise,” he said.

Full statement:

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