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Harare Bureau
THE Industrial Development Corporation (IDC) is seeking a special waiver for its subsidiaries to be given more time to raise money to settle their outstanding statutory obligations. IDC general manager Mike Ndudzo, who admitted that their subsidiaries were in arrears, said they have been engaging statutory bodies such as the Zimbabwe Revenue Authority and the National Social Security Authority for a reprieve.
“We have entities that are viable but what we need now is for us to be given room to sweat those assets then we can pay what we owe,” said Ndudzo.
He expressed optimism that the subsidiaries could operate profitably if set strategies succeeded.
Early this year Ndudzo disclosed plans by IDC to dispose of its shareholding in nine subsidiaries and associate companies as part of the company’s three-pronged strategy to reduce debt, sell-off and entrench its positions.
The company was looking at selling its shareholdings in Stone Holdings, Amtec, Deven, G and W, Almin Metal Industries, Surface Investments, National Fertiliser Industries, Zim Copper and Zimbabwe Grain Bag to suitors who will inject fresh capital.
Ndudzo pointed out that large investments comprising Chemplex Corporation, ZimGlass, Olivine Industries and Willowvale Mazda Motor Industries needed refurbishment capital and had been earmarked for dilution.
IDC is also looking at ensuring that some of its subsidiaries refocus on their core business.
Ndudzo said they had instructed Sunway City (Pvt) Ltd to go back to its core business of developing Sunway City park into specialised industrial clusters for cost-effective infrastructure and/or common service centres.
The subsidiary has been concentrating more on selling residential stands that were originally meant to feed into a broader plan of providing accommodation.
IDC posted a loss of $20,8 million in the year to December 31, 2012. This was after it incurred another loss of $10,7 million the previous year.
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