Online Reporter
Vusumuzi Dube, Deputy Radar Editor
THE Bulawayo City Council (BCC) has resolved to evict the Zimbabwe United Passenger Company (Zupco) from its Khami Road Depot after its failure to complete the lease renewal agreement due to outstanding arrears of over US$140 000.
Zupco has leased the Khami Road Depot from BCC for over 50 years, using it as a key operational hub for its bus services in the region.
The premise houses the company’s regional headquarters.
However, recent negotiations between the two parties have stalled, with both sides unable to agree on terms for continuing the lease after Zupco failed to settle its outstanding arrears, which was a pre-requisite for renewing the lease.
According to the latest council report, Zupco was initially given the offer to renew the lease on 10 June 2021 but has failed to sign it due to the arrears.
“Council on 5 May 2021 had resolved to renew the lease for stand 13724 Kelvin North and remainder of stand 2200A (including lot 4 and lot 5 of stand 2200A and sub-division C of stand 2200A) Khami depots to Zupco for the purposes of a garage, workshop offices for the authorised Operators Motor vehicle only.
“The lease was to run for a period of 10 years subject to review. A principal condition for the renewal was the clearance of outstanding rates prior to signing the agreement of lease. The offer was accepted on 10 June 2021. The lease signing process, however, remained incomplete due to failure to clear outstanding arrears,” reads the report.
Zupco had been sent a reminder letter to complete the lease signing process on 24 June last year for them to finalise the signing process to which no reply was received. The report further reads that another follow up letter was sent on 28 February this year, giving a further two weeks to finalise the lease signing process.
“A letter had been received from Zupco seeking to negotiate a payment plan to clear their outstanding arrears. In their letter, the company did not give a set timeline on when the lease process would be finalised but rather sought to negotiate payment terms to clear outstanding arrears despite a considerable lapse of time since the acceptance of the offer.
“It was against this background that it was recommended that stand 13724 Kelvin North and the remainder of stand 2200A (including lot 4 and lot 5 of stand 2200A and subdivision C of stand 2200A) Khami depots be repossessed from Zupco (Pvt) Ltd,” reads the report.
The local authority revealed that Zupco owes them a total of US$141 715 for the said property.
“The applicant owed a total of US$80 118, US$4 417, US$44 457, US$4,618 and US$8,105 as at 31 April 2025 billing on account numbers 84103902, 89900347, 89900351, 88202205 and 88202213 respectively,” reads the report.
In the letter sent to the local authority by Zupco, the bus company notes that they were in the process of addressing outstanding rates arrears adding that they were facing liquidity challenges that had hindered their ability to settle their dues promptly.
“Over the years, we have established our operations at these premises, which we have come to regard as our home. Our commitment to these locations is reflected in our long-term use and we believe it is only fair that we are given the opportunity to own the stands we rely upon for our bus operations as a Government-owned State enterprise.
“We are in the process of addressing outstanding rates arrears, however, we are facing liquidity challenges that have hindered our ability to settle these dues promptly. Given our history and dedication to maintaining the premises, we kindly request that you consider negotiating a payment plan with us,” reads part of the letter.
Zupco further noted that they have been in occupation and developing the said depots for over 50 years.
However, despite the plea from Zupco, the local authority resolved to repossess the depot and re-allocate it to other interested parties with all the developments put in place by the bus company.
