'Zisco debt must be audited'

'Zisco debt must be audited'
Published: 23 January 2018 (469 Views)
Government should conduct an audit to ascertain how the $380 million Zimbabwe Iron and Steel Company debt was accrued, lobby group The Zimbabwe Coalition on Debt and Development (ZIMCODD) has said.

Finance and Economic Planning Minister Patrick Chinamasa has since gazetted the Zisco  Debt Assumption Bill to facilitate the takeover the debt by the State to pave way for new investment by a Chinese firm R&F Company.

"Before the Government assumes the Zisco Steel debt, it is every progressive Zimbabwean's hope to see a debt audit being conducted to determine how the debt was accrued," said ZIMCODD. ZIMCODD noted that instead of Government assuming the company's debt, Zisco should liquidate its non-core assets to settle its arrears.

Last year, the Government approved the assumption of over $1 billion worth of debts that have been accumulated by some critical State Enterprises including Air Zimbabwe and Zisco, the National Railways of Zimbabwe and the Civil Aviation Authority as part of accelerated efforts to make them attractive to potential suitors. Minister Chinamasa said the assumption of parastatal debts would continue on a case by case basis.

Minister Chinamasa said Zisco was merely existing in name as most of the equipment was obsolete.

"I am informed that only 10 to 20 percent of Zisco is left, the rest is obsolete. We need a new investor to come in with the resources to set up almost a new structure. We have moved out of the old structure and I am hopeful that the company (new investor) should be on stream by end of March," Minister Chinamasa said.

Zisco stopped production in 2008 at the height of the country's economic crisis and between $1 and $2 billion would be required to resuscitate the company, according to Industry and Commerce Minister Mike Bimha.

Essar Africa Holdings, a unit of India's Essar Group, had agreed to invest in Zisco in 2011 but the deal collapsed in 2015. This was after a similar deal with another India company Global Steel Holdings failed to materialise. Zisco, once a major foreign currency earner used to produce about one million tonnes of steel per year.

- chronicle

Tags: Zisco, Audited, Debt,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

'Zimbabwe polls were meant to start new era'

by Staff reporter | 18 August 2018 | 77 Views

Police 'cooked up documents used to drag Biti from Zambia

by Staff reporter | 18 August 2018 | 75 Views

'Punish Zimbabwe's rogue soldiers'

by Staff reporter | 18 August 2018 | 66 Views

Tshinga Dube won't let go

by Staff reporter | 18 August 2018 | 97 Views

Electoral outcome predetermined

by Maxwell Sibanda | 18 August 2018 | 54 Views

General Valerio Sibanda issued statement under duress, says Mutsekwa

by Staff reporter | 18 August 2018 | 70 Views

Grace Mugabe enjoying life

by Staff reporter | 18 August 2018 | 60 Views

Mnangagwa splashes over $1 million on new limo

by Staff reporter | 18 August 2018 | 59 Views

Chivayo, Kadungure in trouble

by Staff reporter | 18 August 2018 | 51 Views

'Biti acted illegally'

by Staff reporter | 18 August 2018 | 67 Views

'Poop at my doorstep'

by Staff reporter | 18 August 2018 | 61 Views

Church leader wanted sex

by Staff reporter | 18 August 2018 | 71 Views

Mliswa under attack for visiting Johane Masowe shrine

by Simbarashe Sithole | 18 August 2018 | 82 Views

Kofi Annan dies

by Staff reporter | 18 August 2018 | 63 Views

Exposed Chief's wife goes berserk threatening all and sundry!

by Concerned Murowa Ward Community | 18 August 2018 | 122 Views

'Senzeni na' guitarist dies

by Stephen Jakes | 18 August 2018 | 87 Views

Chiwenga's trip to Russia suspicious

by Stephen Jakes | 18 August 2018 | 158 Views

Nkayi youths train on active citizenship

by Stephen Jakes | 18 August 2018 | 67 Views

Inside Chamisa's Campaign

by Sam Wezhira | 18 August 2018 | 124 Views

Nkomo pledges to donate to Gwampa ECD

by Stephen Jakes | 18 August 2018 | 58 Views

Chief Justice gives Chamisa deadline

by Staff Reporter | 18 August 2018 | 92 Views

Grace Mugabe 'fake' degree gets UZ vice-chancellor suspended

by Staff Reporter | 18 August 2018 | 69 Views

Zimbabwe police warns against illegal gatherings

by Staff Reporter | 18 August 2018 | 59 Views

Chamisa is not a factor in parliament, which is good

by Igomombe | 18 August 2018 | 81 Views

'Con-Court must be free to decide,' says Chiwenga

by Staff reporter | 18 August 2018 | 65 Views

Chamisa in dilemma

by Staff reporter | 18 August 2018 | 100 Views

Prophet blew cover on $1m gold theft

by Staff reporter | 18 August 2018 | 62 Views

'Proving poll rigging allegations an uphill task'

by Staff reporter | 18 August 2018 | 60 Views

Man in 'fiery revenge'

by Staff reporter | 18 August 2018 | 61 Views

Trapped artisanal miner dies after five days in mine

by Staff reporter | 18 August 2018 | 46 Views

WATCH: Donel Mangena back in Bulawayo

by Staff reporter | 18 August 2018 | 46 Views

High court reverses AFM church evictions

by Staff reporter | 18 August 2018 | 57 Views

Zimbabwean breaks SA wine auction record

by Staff reporter | 18 August 2018 | 52 Views

'No valid application before the court'

by Priscilla Makanyara Chigumba | 18 August 2018 | 73 Views

Challenges for Chamisa's SA lawyers

by Staff reporter | 18 August 2018 | 57 Views