Govt mulls Dimaf takeover

The development follows concerns over delays in the release of the money and the “stringent” conditions that beneficiaries should meet in order to access the fund.

 

In an interview, Industry and Commerce Minister Professor Welshman Ncube said it was disappointing that three months after the Government deposited $10 million to CABS, the money has not been disbursed.

“Nothing has changed from where we were in April when the Government released the $10 million. I was talking to Finance Minister Tendai Biti yesterday and he said not even a cent of the money has been given to companies,” said Prof Ncube.

“He said he has tried to meet the bank officials over the issue but nothing has been done in the past three months. The bank is still sitting on the $10 million and I think the way forward is for Government to take over from CABS and disburse the money directly to businesses.”

However, he could not explain what would happen to the $20 million contribution by Old Mutual.

The Government in October last year pledged to avail the $40 million package under the Distressed Industries and Marginalised Areas Fund (Dimaf) as part of the much touted “Let Bulawayo Survive Campaign”.

Eight months down the line the funding facility remains a pipedream amid conflicting reports between ministries in the inclusive Government.

Asked when the remaining $10 million would be released by the Government, Prof Ncube said: “Minister Biti says the Government is broke. I talk to him every week literally saying can we do something but he insists that he is in a financial crisis.

“However, we do not understand why he says there is no money when the country received enough money for that purpose from the International Monetary Fund (IMF). From that money Treasury was supposed to release $20 million last year and $30 million this year for industries.”

He said the confusion surrounding the disbursement of Dimaf meant that more firms would suffer, a situation that would lead to more job losses.

“Well this implies that companies will face more difficulties and many workers would lose their jobs. This is the situation we are in. As a Ministry, we have come up with policies and we look forward to Treasury to finance these plans. Ours is just to push and lobby for the disbursement of these funds,” said Prof Ncube.

Minister Biti could not be reached for comment on his mobile phone.

His Permanent Secretary Mr Willard Manungo said he was not in a position to comment.

“I would have to come back to you because I do not have the latest update on the issue. I will arrange somebody to talk to you. Call me tomorrow,” he said.

CABS public relations and marketing manager Ms Matilda Nyathi could also not comment on the issue.

“Let me refer you to the Ministry of Finance first for the progress we have made and then you can come back to us after,” she said.

Zimbabwe National Chamber of Commerce (ZNCC) Bulawayo chairperson Mrs Ntombenhle Moyo could not be reached for comment as she was said to be out of the country.

Launching the funding facility in October last year, the Government, which partnered with Old Mutual, announced that it would avail $40 million for ailing Bulawayo firms through CABS.

The arrangement was that Government would deposit $20 million with Old Mutual depositing the other half.

Minister Biti only deposited $10 million in April and has not indicated when the next tranche will be released.

Captains of industry in Bulawayo, politicians, workers, the youth and members of the civil society have roundly condemned the delays in disbursing the promised funding.

They are accusing the ministers in the inclusive Government of politicising the fund while workers in Matabeleland suffer.

President Mugabe has said urgent measures should be taken to revive Bulawayo companies.

About 60 companies applied for the fund but the status of the applications is still a mystery as CABS has been adamant it would not release the information.

More than 80 companies have closed shop in Bulawayo while others have relocated to Harare and other towns, leaving hundreds of workers jobless.

The development has also been blamed for fuelling the migration of youths and skilled workers to neighbouring countries in search of jobs.