Zupco financial problems a result of patronage, corruption, says Moyo

ZCTU secretary-general Japhet Moyo says financial problems at Zupco is symptomatic of the abuse and mismanagement of parastatals in the country.

Several parastatals face viability problems that have seen workers going for months without pay.

These include the National Railways of Zimbabwe and national airline Air Zimbabwe.

This is not new but a manifestation of the challenges the country is going through," Moyo said.

"The mismanagement of state enterprises is not only confined to Zupco but also the NRZ among other parastatals."

He said the poor performance of most parastatals was due to the appointment of unqualified individuals to senior managerial positions because of their party affliation as well as the scourge of corruption.

" These problems will not go away overnight. Companies like Zupco are being siphoned to cater for galas and Zanu PF conferences and this becomes part of a bigger problem," Moyo said.

"These problems will continue as long as they are playing to the tune of the master."

Problems at these parastatals are likely to worsen, resulting in unemployment and increased participation in the informal sector thereby further reducing the government's weak revenue base.