CAAZ, NHS resign to losing millions to Air Zimbabwe

The Civil Aviation Authority of Zimbabwe (Caaz) and the National Handling Services (NHS) are resigned to the possibility of losing $68,8 million they were owed by Air Zimbabwe when it was placed under judicial management.

Air Zimbabwe, which in the last few years has been persistently underperforming, was placed under reconstruction on October 4 last year in terms of the Reconstruction of State-Indebted Insolvent Companies Act (Chapter 24:27).

According to ZBCtv, Caaz and the National Handling Services were among the companies that were owed huge sums by the flag carrier at $43 million and $24 million respectively.

The national broadcaster reported that the Caaz debt had since accumulated to $44,8 million at the end of December 2018 and there was concern that the two parastatals may never recover their dues.

Last week, Transport and Infrastructural Development Minister Engineer Joel Biggie Matiza was in Malaysia discussing ways of helping the ailing parastatal.

Efforts to get a comment from Eng Matiza were unsuccessful by the time of going to print yesterday as he was said to be in a Cabinet meeting.

Towards the end of last year, Air Zimbabwe floated a tender seeking an investor to turnaround the fortunes of the troubled national airline.

And as part of efforts to lure a strategic partner for Air Zimbabwe, the Portfolio Committee on Transport and Infrastructural Development has recommended Government to assume the airline’s debt.

Over the years, the ailing airline has been faced with the legacy debt which has hamstrung Air Zimbabwe’s operational capacity as evidenced by low level reliability and cancellation or delayed flights on its two operational aircraft.

Meanwhile, the airline’s creditors have authorised Air Zimbabwe’s administrator, Mr Reggie Saruchera, to raise capital required to support its operations.

The resolution was passed during the flag carrier’s preliminary creditors’ meeting held towards the end of last year.

During the reconstruction process, all payments towards debts accrued by the company prior to October 4, 2018, would be temporarily suspended and settled in terms of this process.

Air Zimbabwe, akin to most State enterprises and parastatals, fell on hard times for a long time owing to mismanagement which also saw the airline withdrawing from servicing the money-spinning Harare-London route to avoid the seizure of its aircraft.

In December 2011, one of the flag carrier’s long haul aircraft, a Boeing 767-200, was impounded by American General Supplies at Gatwick International Airport in London over a $1,2 million debt. — ZBCtv/ The Chronicle