HomeBusinessPolitics block US$10m Byo bailout funds

Politics block US$10m Byo bailout funds

In an interview with The Standard in Gweru last week, Ncube said all struggling Bulawayo firms might not benefit from the fund set up last year to revive struggling companies.

He said government should have gone it alone instead of teaming up with Old Mutual as political bickering over the funds had worsened the dire situation.
Ncube said the concept and the principle of assisting struggling firms was noble but there were problems that needed to be corrected.

As part of the agreement signed by the two parties, Old Mutual and the government have to provide US$20 million each to the fund.

The money would then be loaned to companies that need to recapitalise their operations.

Ncube said Finance minister Tendai Biti had supported the Dimaf committee and the cabinet on the funds, he was yet to provide the funds.

Ncube said between March and April, the cabinet agreed to Biti’s proposal that he would bring in US$125 million from the International Monetary Fund (IMF) meant to shore-up Zimbabwe’s reserves and out of this amount, US$30 million would go into Dimaf.

Ncube said even though the two parties were to put US$20 million each, there were now fears that Bulawayo might not even get a dollar.

“It would have been better to take the US$10 million that is there and make it available even if each company would get US$300 000.

“That would benefit in excesses of 30 companies. The US$10 million has been sitting in a CABS account since April and not a dollar has been distributed to any Bulawayo firm.”

Recently, youths from MDC threatened to invade CABS offices in protest over delays in disbursing the money meant to resuscitate Bulawayo’s comatose industry.

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