Business / Companies
Govt to takeover TelOne debt
19 Oct 2015 at 18:16hrs | Views
Treasury has committed itself to cleaning up TelOne's balance sheet through the assumption of the $352 million legacy debt, and the proposal is now awaiting cabinet endorsement.
Government says while it is satisfied with TelOne's performance and the return to profitability, it is still deliberating on the proposed assumption of the $352 million dollar legacy debt.
The debt assumption decision will depend on the state-owned enterprise's commitment to sound management, according to Finance and Economic Development Minister, Patrick Chinamasa, who graced the parastatal's annual general meeting held in Harare.
"We will be discussing the matter with my colleague, Supa Mandiwanzira [ICT, Postal and Courier Services minister] but let me emphasise that while it is our desire to clean TelOne's balance sheet, the decision will depend on sound management by the parastatal," he said.
Mandiwanzira highlighted the need for state-owned-enterprises make meaningful contributions to the economy and commended TelOne for returning to profitability.
"State-owned enterprises should not bleed the economy, rather they should make meaningful contributions to the economy. We are happy as government with the strong performance by the entity," he said.
Government says while it is satisfied with TelOne's performance and the return to profitability, it is still deliberating on the proposed assumption of the $352 million dollar legacy debt.
The debt assumption decision will depend on the state-owned enterprise's commitment to sound management, according to Finance and Economic Development Minister, Patrick Chinamasa, who graced the parastatal's annual general meeting held in Harare.
Mandiwanzira highlighted the need for state-owned-enterprises make meaningful contributions to the economy and commended TelOne for returning to profitability.
"State-owned enterprises should not bleed the economy, rather they should make meaningful contributions to the economy. We are happy as government with the strong performance by the entity," he said.
Source - zbc
