Online Reporter
Vusumuzi Dube, Deputy Radar Editor
PUBLIC transport operator Zupco has successfully halted the repossession of its Bulawayo depots after convincing the local authority that it was making significant efforts to settle outstanding arrears and utilise the properties.
According to the latest council report, the city is set to rescind its July 2025 decision to repossess the remainder of Stand 2200A, including Lot 4 and Lot 5 of Stand 2200A and Subdivision C of Stand 2200A at Khami Depots, as well as Stand 13724 Kelvin North.
The properties, which house Zupco’s garages, workshops and offices, had been earmarked for repossession after the transport operator failed to clear outstanding arrears, a key condition for the renewal of its lease agreements.
Council had in May 2021 resolved to renew Zupco’s lease for the sites for a period of 10 years, subject to review and payment of all outstanding arrears before signing of the agreements.
However, the lease renewal process stalled after the company failed to settle the outstanding amounts.
A reminder to complete the lease signing process was sent to Zupco in June 2024 but no response was received. Another reminder sent in February 2025 prompted the company to seek negotiations over a payment plan.
Council subsequently resolved in July 2025 to repossess the properties and reallocate them to other interested parties.
Following receipt of the repossession notice, Zupco lodged an appeal arguing that its operations were of national importance.
“ZUPCO is a public company and its occupation and use of the premises in question is of national interest. The anticipated repossession is therefore against the national interest,” the company said in its appeal.
The company also highlighted its long-standing presence at the facilities, saying it had occupied the premises for more than 40 years.
“The period within ZUPCO has been in occupation of the premises in question is in excess of forty years ought to have been taken into account before deciding to repossess the same,” the company argued.
Zupco further submitted that it had invested in maintaining the facilities and intended to continue operating from the sites for the foreseeable future.
A subsequent site inspection by council officials revealed limited activity at the Kelvin depot and no significant renovations at either site, contrary to some claims made in the appeal.
However, council noted that the company had since demonstrated commitment towards retaining the properties.
The report said Zupco had cleared outstanding arrears for Stand 13724 Kelvin North and had removed old buses from the depots to pave way for new additions to its fleet expected in the near future.
The company also submitted a commitment letter dated April 27, 2026 undertaking to pay US$2 000 per week towards clearing outstanding balances on all accounts.
Council records show that the company had already made an initial payment of US$2 000 towards arrears on Lot 4 of Stand 2200A and had continued making weekly payments in line with its undertaking.
The Town Planning Department indicated that it had no objections to the appeal provided lease conditions were complied with and all relevant departments supported the application.
The Valuation and Estates Branch also backed the appeal, citing the company’s demonstrated willingness and capacity to clear outstanding debts.
However, council rejected Zupco’s application to purchase the Khami Depot, recommending instead that the transport operator be granted fresh 10-year leases for both the Kelvin North and Khami properties.
According to the Financial Services Department, the company still owes a combined amount exceeding US$52 000 across five accounts, with the largest single outstanding balance standing at US$22 812,96.
Council’s Allocation of Stands and Premises Committee has since recommended that the local authority rescind the repossession decision, renew the leases for a further 10 years and grant Zupco six months to clear outstanding arrears on the Khami properties.
The committee also recommended that all outstanding balances be settled before the signing of the lease agreements.
