Concern over ‘stripping’ of ailing company assets

BULAWAYO Provincial Affairs and Devolution Minister, Judith Ncube, has expressed concern over reports of alleged ‘stripping’ of equipment and other assets of ailing companies that have been placed under judicial management.

While the city’s industry is regaining lost ground as evidenced by the positive strides being recorded by some big companies who have weathered the past macro-economic challenges, others are still struggling to keep afloat.

The Government, working closely with the private sector leaders, is implementing measures meant to rejuvenate the manufacturing sector.

Among these is the on-going doing business reform drive, tax incentives, introduction of the foreign currency auction system, which has assisted many businesses in procurement of critical raw materials, harnessing joint venture partnerships and promoting exportled growth under the economic diplomacy drive.

Minister Ncube, however, said Bulawayo still has a challenge of bad apples who are reportedly stripping assets of ailing firms, which works against the Government’s reindustrialisation dream.

She told the Minister of State for Presidential Affairs responsible for monitoring and implementation of Government programmes, Dr Joram Gumbo, during a recent tour of the city’s firms, that her office has received worrying reports that some companies that were under judicial management have been stripped of their assets.

“On behalf of Bulawayo residents, I appeal to your office to assist most of our companies.
Most of these companies were under judicial management and some of them are still under such a set up,” said Minister Ncube.

“I know one company near Renkini Bus Terminus. The person who was tasked to manage the company and give hope to the workers and to the residents of Bulawayo has actually stripped even the company’s doors.

“In other words, there is no more hope that the company will ever be revived. Hence, I’m appealing to your good office to intervene.”

The minister commended the shareholders of National Blankets, which is on a recovery path after successfully exiting judicial management, for surviving liquidation.
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The company has started producing based on orders and is implementing a revised business model that harmonises latest technology standards and modern customer requirements.

Its products are now available in the market and were showcased during the Zimbabwe International Trade Fair in September.

“National Blankets has always been on the economic landscape of Bulawayo. This company also fell victim to economic challenges that befell this country in the past two decades just after having invested in new technology,” said Minister Ncube.

“Unfortunately, it went into judicial management for five years and came out at the end of 2020, reflecting the resilience that the shareholders have.”

She said the company was among the institutions that have benefitted from the Government’s 100-Day-Cycle Programme.

“The company is key to the growth of the cotton to clothing value chain. Its revival cannot be under estimated,” said the minister.

“There is hope in National Blankets resuscitation and their resilience shows confidence in the Second Republic’s policies and programmes to revive industries especially in Bulawayo.”

Dr Gumbo commended Minister Ncube for her passion for the development of Bulawayo saying the Second Republic was more committed to transforming the city’s industry.-The Chronicle