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Zitac under liquidation

Reports say Zitac creditors are likely to lose out as the company’s liabilities far outweigh its assets.

 

The company owes Boka Investments over US$2 million while Tobacco Industry and Marketing Board is owed US$200 000 for levies and commission for last season.

Earlier this year, Zitac admitted to owing tobacco merchant, Mashonaland Tobacco Company US$350 000 for tobacco deliveries made during the last marketing season among other debts.

Saviour Kasukuwere, the Minister of Youth Development, Indigenisation and Empowerment said government was aware that most black- owned companies were facing financial difficulties.

Kasukuwere attributed the problem to limited financial support from banks.

“The 90-days repayment arrangement offered by most institutions is not sustainable to running profitable business, especially under the current harsh economic situation,” he said.

Kasukuwere said government had no financial capacity to assist all struggling companies.

Independent economic analyst John Robertson attributed the collapse of most businesses to lack of financial discipline.

He said all over the world very few people have the acumen to run successful businesses.

“It is behaviour patterns, you see when people borrow money they don’t use it for intended purposes,” Robertson said.

But critics fear the same people who have run down thriving enterprises would be given the companies that government wants to seize from foreign investors.

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