NRZ launches drive to recover illegally occupied properties
The National Railways of Zimbabwe (NRZ) has embarked on a massive drive to recover vast swathes of its land along the Bulawayo-Beitbridge line from illegal occupants amid indications that some occupants are leasing out the properties raking in as much as US$2 000 per month in the process prejudicing the parastatal of much-needed revenue.
The parastatal seeks to generate at least US$1 million monthly from its real estate. At present, the section is netting at least US$500 000.
NRZ is Zimbabwe’s largest private land owner, with a real estate portfolio worth a staggering US$300 million, according to a report produced by an independent valuer in October last year.
Its real estate business portfolio is responsible for overseeing the parastatal’s assets that include commercial land and farms, office accommodation, residential houses (employees and private tenants), warehouses and commercial developments at stations and sidings as well as joint venture developments on railway reserves.
According to NRZ, the areas which were occupied by the illegal occupants include Esigodini, West Nicholson and Gwanda among others where people took advantage of the gap that existed when private railway company, Bulawayo-Beitbridge Railways (BBR) was granted authority to run the line as a private concession in the late 1990s.
Business Chronicle understands that according to the results of a thorough investigation commissioned by the company in July, some of the occupants actually turned into land barons, parceling out and leasing stands on their own and realising a fortune out of the land.
An investigation team set up by the NRZ management also discovered that these barons were pocketing as much as US$2 000 per month from leasing NRZ properties without paying anything to the Administration.
A team was then sent on the ground to issue leases to those occupying the land.
NRZ Public Affairs and Stakeholder Relations Manager, Mr Andrew Kunambura
NRZ Public Affairs and Stakeholder Relations Manager, Mr Andrew Kunambura said the process to repossess the land was underway although some elements are resisting the move.
“We started with Bulawayo, Hwange and Victoria Falls and now the team is on the Bulawayo-Beitbridge line.
“The team has faced a bit of resistance from some of the people who were benefitting, especially those sub-letting who in some instances want to be political,” he said.
“However, NRZ is insisting that anyone who wants to utilise either its land or premises should go through the formal leasing procedures and pay for them.
“We also have instances where some of them were putting up structures in railway servitude and we are removing them as this poses a danger to lives”.
“The Second Republic is known for restoring order and we cannot have a situation where people just grab NRZ assets and personally benefit at the expense of the whole country.
“No one has a right to enjoy money from a public entity while exploiting others by charging exorbitant prices,” Mr Kunambura said.
He said in terms of Section 37 of the Railways Act, it is an offence to enter or remain on Railways premises without reasonable excuse, and the burden of proof shall be on the occupier.
The offence attracts a fine of level six or imprisonment for a period not exceeding one year. In terms of the 1st Schedule of the Railways Act, NRZ has the powers to lease some of the land or properties that are not currently in use.
The parastatal has a master plan that will see the incorporation of all these open spaces into its railway operations in future when traffic volumes improve.
Such leases are therefore on a temporary basis while the company is working on recapitalisation that will see it reclaiming its position in the Sadc region.
NRZ is one of the parastatals that was failing to pay salaries between 2012 and 2020.
However, with the coming in of the new Board and Management, the parastatal cleared all the outstanding salaries and made a raft of changes that saw it posting operational profits.
Recently, the parastatal received regional praise from railway unions in Sadc for promoting an engagement policy with its employees that cement social dialogue within the parastatal and also clearing of outstanding salaries.-chronicle