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constitutionally due by June 29 2013.
Managing director of CMED Mr Davison Mhaka said they had to take money from their company coffers to pay those individuals they had sub-contracted
to have their cars used in the referendum.
He was giving oral evidence before a Parliamentary portfolio committee on Transport and Communication chaired by Kwekwe Central MP Mr Blessing
Chebundo (MDC-T).
Mr Mhaka said they were owed in excess of US$13 million in car hire and US$800 000 in fuel purchases.
“We are engaging with ZEC and Treasury. I got hold of them (Treasury) today before I came here and they even invited me to come to see their figures. It will be a tough negotiation with ZEC to ensure that the US$1,6 million they owe us is paid,” said Mr Mhaka.
“We had to pay people whom we had sub-contracted. We had a contract with them and we even paid them well after the due date,” he said.
On car hire to Government ministries and departments, Mr Mhaka said they were now prioritising those ministries that pay.
“That is what we are doing and this is what has kept us going,” he said. He said most CMED depots across the country had no fuel because of the cash
crunch arising from non-payment by Government departments.
He said lack of payment by Government departments had even affected driver training programmes. CMED, said Mr Mhaka, acquired a fuel import licence as part of making a mark in the market after several stakeholders complained about their price.
This was after they realised that the fuel they were buying from dealers was so uncompetitively priced when they sell it to Government departments
that the State entities were actually resorting to buying directly from service stations. Mr Mhaka said CMED was making profit in other business units like vehicle repair and maintenance and driver training.
Online Reporter