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more than 100 000 people jobless after failing to implement a Cabinet directive to revamp local industries.
This flies in the face of MDC-T’s election manifesto hinged on the party’s Jobs, Upliftment, Investment, Capital and the Environment (Juice) policy that pledges a million jobs by 2018.
Statistics released by Industry and Commerce Minister Professor Welshman Ncube show that Mr Biti’s reluctance to fund companies through the Distressed Industries and Marginalised Areas Fund (Dimaf) in defiance of Cabinet contributed to the loss of about 100 000 jobs in Bulawayo, Manicaland and the Midlands.
Professor Ncube said Minister Biti on several occasions brushed off Cabinet resolutions that directed him to channel funds to the local industry, despite the fact that the funds were available for distribution.
“The whole blame is on the Inclusive Government, we left the Finance Ministry to implement the distribution of the funds but alas the whole process was retarded by the ministry.
“Statistics carried out by the Ministry of Industry show that by June, 30 000 people were left jobless in Bulawayo. In Manicaland, the paper, tea and coffee industries collapsed leaving another 30 000 people out of work.
“The same happened in Redcliff where over 30 000 lost jobs again after the steel industry closed down and the same is happening countrywide due to the non disbursement of funds by the Finance Minister.”
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In 2010, Minister Biti launched Dimaf and US$50 million was set aside to bail out Bulawayo industries, while another US$50 million was to be distributed to other industries around the country.
Another US$70 million facility jointly funded by Government and the African Export Import Bank was launched in 2010 to address liquidity challenges among local industries and assist in recapitalising the firms.
Prof Ncube has since said although the Dimaf matter remained an albatross around Minister Biti’s neck, Cabinet should partly shoulder the blame after it failed to exert pressure on the minister to implement its resolutions.
He said ordinarily, Minister Biti should have been fired from his post as he had caused de-industrilisation.
“The buck stops with him (Minister Biti) because he has the responsibility to release the funds.
“The responsibility also lies with us as Cabinet because we have a collective responsibility.
“Essentially, if we had one party in Government we wouldn’t have such a situation, otherwise that person would be fired by whoever will be President,” he said.
It has not been clear how these funds were used and recently Minister Biti only conceded that US$10 million had been distributed to bail out Bulawayo firms through CABS, but Prof Ncube is on record as saying that no company in the province had received the funds.
However, the failure to immediately distribute the funds citing reasons that the companies were not meeting certain commercial requirements saw over 100 companies closing shop in Bulawayo only by 2011 and over 20 000 people jobless during the same period.
Online Reporter