Africa: Loss Making Air Zimbabwe Placed Under Reconstruction
STRUGGLING national airliner, Air Zimbabwe has been placed under reconstruction due to continuous failure to generate profits to remain commercially viable.
Under general notice 758 of 2018 published in the Government Gazette Friday, Justice Minister Ziyambi Ziyambi issued a reconstruction order in relation to Air Zimbabwe Limited and Air Zimbabwe Holdings Private Limited.
“I hereby appoint Reggie Saruchera, lead partner of Grant Thornton to be the administrator of companies under reconstruction. Tonderai Mukubvu and Tinashe Mawere shall be assistant administrators,” read the notice in part.
The notice also halted all the airline’s management board members from conducting any business related activities because their functions have been transferred to the appointed administrators.
Legal experts note that such placement is provided for under the Reconstruction Act as measure that allows government to temporarily takeover the running of a company’s operations if convinced that there may be risk of closure due to bad management.
The process is undertaken to avoid liquidation.
Air Zimbabwe has seen its fleet deplete over the years, coupled with strikes by pilots and the flight of experienced staff to more stable airlines.
The rot has been blamed on general mismanagement by top managers as well as government interference in its running.
The firm has also been saddled with a giant debt which it has struggled to repay as potential clients, among them government officials, prefer to fly on airlines such as the South African Airways.
By Alois Vinga