adminlitigation cases against companies amid reports that more than 50 firms are now under judicial management.
The development has induced fear within the business community who believe the trend might further lead to the closure of the few remaining companies.
Speaking during a stakeholders’ meeting organised by the Affirmative Action Group (AAG) on Thursday evening, participants said unless litigation cases were controlled, the economy of Bulawayo would collapse and thousands would be rendered jobless.
The stakeholders said Bulawayo’s economy was the worst performing in the country and called for the introduction of a moratorium on litigations to give ailing companies breathing space.
A moratorium refers to the suspension of a specific activity until future events permit its return.
“At the moment Bulawayo is the worst performing economy in the country yet we are experiencing increasing cases of litigation each day. Every week our office handles not less than a dozen cases of company litigations,” said Mr Sam Ncube, AAG deputy president.
“In four months time we have recorded more than 50 companies that are now being run under judicial management. This is as good as manufacturing disaster and poverty because none of the companies would survive this onslaught.”
The stakeholders said the declining economic activity in Bulawayo was getting out of hand and urged Bulawayo residents to stand up and call for the suspension of litigations.
“What is happening now has grave long-term implications and it is high time that we stand up and reverse the trend. Everyone is taking each other to court, the companies, city council, Zesa, banks and landlords. All this must stop for Bulawayo to survive,” said a local businesswoman who identified herself as Mrs Sakhile Masuku.
Prominent lawyer Advocate Sabelo Sibanda said the problems facing the city needed collective action.
He challenged stakeholders to conduct massive awareness programmes about the plight of the city.
“We need to organise people and participate collectively to make this city right. Let us have the push to suspend these litigations as they impact negatively on the city’s economy,” said Mr Sibanda.
“The moratorium will bring temporary relief and allow companies to concentrate on positive issues that can revive the city’s economy.”
Zimbabwe National Chamber of Commerce Bulawayo branch chairperson Mrs Ntombenhle Moyo said litigations should be stopped for Bulawayo industries to be survive.
“Bulawayo must be restored and we cannot look at Government as it has failed through Dimaf. If Bulawayo industries die nothing would be left for the city and the entire region. We have been suffering silently as a city and now is the time to stand up,” she said.
Zimbabwe Commercial Farmers Union (ZCFU) president Mr Donald Khumalo said the demise of Bulawayo industries was a product of many factors that include low agricultural production in the whole of Matabeleland region, influx of cheap imports and liquidity problems.
He castigated politicians for failing to make noise about the problems facing the city.
Said Mr Khumalo: “Politicians seem to be preoccupied with politics and less with our welfare. People from Matabeleland have also not made enough noise about their problems. The very livelihood of the city is threatened but we are quiet.”
The chairperson of the Competition and Tariff Commission, Mr Dumisani Sibanda, said although the city was facing liquidity challenges, the problem was compounded by lack of political will at national level.
He said it was the duty of the Government to protect its people from exploitation and to foster the revival of industries.
“It is a fact that a majority of people are not able to meet their bills because the money they get is not enough. Companies are now extending debts on each other than borrowing from banks. It is sad that some companies continue to increase tariffs even when inflation is stable. The problem is lack of political will and ignorance by our people who should challenge companies that exploit them,” said Mr Sibanda.
The participants said the Government should come up with deliberate policies to ensure that proceeds from the mining sector were channelled towards reviving industries.
They also challenged the National Indigenisation and Economic Empowerment Board (NIEEB) to monitor big companies and ensure that local companies benefit from tenders and sub-contracts.
Heated debate also ensued over property attachments and water cuts by city council and power cuts by Zesa with stakeholders saying it was illegal for these institutions to deny people service when their operations were poor.
Bulawayo has witnessed the closure of more than 85 companies and loss of jobs to thousands of workers.
Online Reporter