HomeBusinessRBZ struggles to raise cash for retrenched staff

RBZ struggles to raise cash for retrenched staff

The money was supposed to be raised from the disposal of non- core assets. This paper is reliably informed that the disposal of the assets cannot be completed by Thursday.

Last month, RBZ announced that seven firms where it has interests would be sold. The sale of the assets would be administered by the assets disposal committee chaired by board member retired Justice George Smith.

Sources said last week that it was now impossible to dispose of the assets by Thursday as there was an oversight when the bank asked for bids from financial advisors and interested buyers.

“What was supposed to happen is that the bank was supposed to allow bids for financial advisors first before announcing the companies to be sold,” an RBZ source said.

“In such a case the bank has to get the financial advisor and then allow bids from those interested in buying the companies.”

The financial advisors would determine the bids.

RBZ wants to sell its 58,75% in Tractive Power Holdings; 70% in Tuli Coal; 50% in Transload (Bio Diesel) and 64,9% in Astra Holdings. It also wants to sell its 65% shareholding in Sirtech; 100% in Homelink and 100% in Carslone Enterprise.

The bids are “open to all Zimbabwean citizens, locally registered companies as well as to foreigners and externally registered firms subject to the indigenisation laws of the country.”

The disposal of the assets will allow the central bank to concentrate on its core business.

RBZ was accused of quickening hyperinflation by engaging in quasi-fiscal activities. This included agriculture-support schemes under which farmers obtained heavily-subsidised farm inputs.

The central bank also launched  a number of other projects ostensibly to mitigate worsening poverty among Zimbabweans which government blamed on Western imposed sanctions.

However, the amended RBZ Act mandated the bank to move out of non-core activities. Of its numerous companies, RBZ would remain with Fidelity Printers and Refiners, as well as Aurex.

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