Harare says no to beerhall sales

various creditors, its employees, statutory remittances and banks US$14 million.
Rufaro Marketing properties have been valued at US$27 million against liabilities of US$14 million.
Rufaro Marketing wanted to raise funds to “pay off current liabilities” and “avoid compulsory acquisition of the remaining outlets at depressed prices”.
But the joint meeting of the finance and development and business committee on August 20 ruled that the disposal was not in the best interest of the council.
The committees, whose minutes were approved at the recent full council meeting, charged Rufaro Marketing board with finding an alternative solution to address the matter.
“It be recorded that the joint committee does not accede to the proposed disposal of the 11 outlets as presented by Rufaro Marketing (Pvt) Ltd,” reads part of the minutes.
The joint committees said management at Town House should consider the implementation of its suggestions. These include applying to Government for a reprieve on organisational incapacitation in terms of the Labour Act, the redeployment of some employees into council and the relocation of Harare Water offices to the Rufaro Marketing head office along Remembrance Drive in Mbare as a cost-cutting measure.
The departmental offices are housed in a rented building along Speke Avenue in the city centre.
Rufaro Marketing acting chief executive officer Mr Daniel Mutiwadirwa told the council that 98 employees had opted for voluntary retrenchment leaving the staff complement at 271.
Six outlets had been leased out to 28 employees as part of retrenchment package.
Rufaro Marketing has adopted a 100 percent leasing concept for all its beerhalls and properties as part of the company’s turnaround programme.
The leasing of the 86 beer outlets was expected to raise US$4 million every year.
So far, 39 outlets have been approved for leasing to TN Holdings, Delta and PSMI.