Zimbabwe robbing motorists to keep Air Zimbabwe afloat?

A recent parliamentary committee report on Air Zimbabwe showed the airline is generating an average $2.65 million per month, against monthly expenses of $5.94 million. The company has a $298 million debt, which the government is poised to take over in a bid to clean up the airline’s balance sheet as it scouts for a technical partner to salvage the business.

In 2013, the fund also paid $555 572 which was not supported by invoices. Cash withdrawals amounting to $89 000 were made without the chief accountant’s approval and supporting payment vouchers. A further $292 462 in payments on behalf of the Transport Ministry’s head office were made without payment vouchers or invoices.

“Without adequate documentation, I could not satisfy myself whether the transactions were proper charges against the fund,” the AG stated.

To which the fund management responded tersely: “The observation is noted. Corrective measures will be taken.”

The AG further noted that the number plate fund’s 2014 accounts reflected payments amounting to $813 555 on behalf of the parent transport ministry for fuel procurement as well as travel and subsistence allowances.

“This was in contravention of the fund’s constitution which states that income should be applied towards financing costs of production and distribution of vehicle number plates,” the AG admonished.

The fund’s expansive expenditure on non-core payments to AirZim shows it is overcharging for the number plates, something government has admitted to.

In May, Transport Minister Joram Gumbo promised to reduce the number plate fees.

“My ministry is currently reviewing the cost of number plates with a view to making them more affordable. When we do that, we will still have to come back to Parliament and have everything gazetted in the interest of the public,” Gumbo told Parliament.

The Central Vehicle Registry (CVR) partnered Southern Region Trading Company (SRTC) – a serial, often uncontested supplier to the Transport Ministry – in the supply of number plates introduced in March 2005.

In terms of the number plate deal, CVR, through the number plate fund, contributes 60 percent of the raw material purchase price, with SRTC weighing in with the balance and having full custody of the material.

The Workington-based company, which is registered as Univern and calls itself “a leading supplier to Zimbabwe’s Ministry of Transport and Communication,” has been embroiled in some controversy.

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