Diamond firms failing to pay suppliers

By Abel Zhakata

MUTARE – Diamond mining companies at Chiadzwa are failing to pay businesses in Mutare millions of dollars for goods and services supplied – a situation that has negatively impacted on operations at most companies in the eastern border city.

This was revealed during a business breakfast meeting held in the city in which companies sought to realign their activities with the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim-Asset).

Airing their grievances to the Deputy Minister of Finance and Economic Development, Dr Samuel Undenge, who was the guest of honour, company directors said they were struggling to be paid their dues by the mining companies.

Some of the debts reportedly dated back to more than 12 months.

Those owed supplied bottled water, industrial equipment, stationery, engineering services, transport, meat products as well as specialist services.

“We need your help here. We supplied diamond mining companies at Chiadzwa some months back, but they are failing to pay us. We are told of various excuses. How can you help us recover our money?”asked a director of one of the companies who chose not to be named.

They said the non-payment of the debts had a telling effect on their operations and was therefore derailing their efforts to put their operations in line with the tenets of Zim-Asset.

The business community also blamed Zimbabwe Revenue Authority for presiding over the closure of some companies because of their harsh penalty regime. They said such actions worked contrary to the aims of Zim-Asset, namely job creation and sustainable development.

The entrepreneurs said the tax collector was instituting drastic garnish orders and attaching company assets of defaulting businesses, a scenario that has led to many workers being thrown on to the streets.

Dr Undenge said companies in Manicaland were to blame for not taking an initiative to venture into value addition operations of diamonds, gold and other minerals and natural resources in the province.

“I take the ball back into your courts. You should not cry foul and say you are being sidelined. You must take the initiative. Create joint ventures or syndicates and approach Government. Mutare plays an important role in the implementation of Zim-Asset due to its proximity to the Indian Ocean. It is the gateway to the sea. We need to concentrate on adding value to our products.

“Let’s stop exporting raw materials because by doing so we are actually exporting our jobs and our wealth. We are creating unemployment at home as workers should be employed by value adding companies. In the same vein, we should come up with best fiscal reforms to promote business and investment. That is why we are creating Special Economic Zones like here in Mutare.”

He said Government was finalising the joint venture framework that would see private and public sector partnerships in the running of several social structures like hospitals.
Irrigation development and rehabilitation, he said, was central to achieve food security in drought-prone areas.

Manicaland Provincial Administrator Mr Fungai Mbetsa said there was urgent need to sell the Zim-Asset agenda to the grassroots as well as engage all stakeholders to follow the same path.

He said people need results leading to positive changes in their livelihoods.

Zimbabwe Open University Manicaland co-ordinator Mr Kenneth Saruchera said the business community had a responsibility of coming up with solutions to problems they were facing.

“A lot of people point fingers at Government without proffering solutions. Here (in Manicaland) we have no serious programmes to value add our resources. Absolutely nothing is happening in Manicaland. We are being arm-chair critics and its time we get involved.”

Businesses said banks must help ease the liquidity crunch by tapping money from the informal sector.

“Banks should relax some of their requirements and tap on money abundant in the informal sector. This sector is the one that is driving the economy at the moment and billions of dollars are exchanging hands,” said one of the delegates.

It was generally agreed during the meeting that some Government departments were throwing spanners in the works by not taking their work seriously.

Zimra Head of Audit in Manicaland, Mr Willie Chishakwe, said a lot of companies in the province owe the tax collector.

“We can actually exceed our targets by three times if we collect all the debts. Zimra is offering payment plans to those in arrears. If you don’t come to own up what you owe us that is when we take drastic measures. Due to the prevailing harsh economic conditions we are not attaching property though the Commissioner General is empowered to do so.”

Dr Undenge said Zimra plays an important role because civil servants need to be paid and thus companies must pay their dues on time to avoid penalties.

The Presidential Affairs Ministry will today (Friday) and tomorrow hold the Manicaland ZimAsset Provincial Expo at the Mutare Civic Centre whose thrust is to provide companies with a platform to market themselves to the general public in the line with the economic blue print’s aims and objectives.

Similar events are being held countrywide. Manica Post