Bulawayo businesses demand names of Dimaf beneficiaries for transparency

BUSINESSES in Bulawayo yesterday demanded the publication of names of companies that will benefit from the Distressed Industries and Marginalised Areas Fund (Dimaf) to promote transparency and avoid abuse of the funds. Last week the Government short-listed 58 Bulawayo companies earmarked to benefit from the $40 million fund.

Out of the 58 companies, only 28 have so far applied for the fund and would share $15 million, of which $2 million has already been disbursed.

Speaking to Chronicle yesterday, the chairperson of the Zimbabwe National Chamber of Commerce (ZNCC) in Bulawayo, Mrs Ntombenhle Moyo, said it was important for the people of Bulawayo to know the companies that would benefit from Dimaf.

She said company representatives had submitted letters to relevant ministries, requesting meetings to deliberate on the issue.

"We are surprised that the disbursement of the fund has suddenly become a secret and it is not fair. Bulawayo should know who is benefiting from the fund because it is of public interest. We have only been told that $2 million has been given out to two companies, who will get a million each, and nothing else," said Mrs Moyo.

"The disbursement of the fund is meant to benefit the people of Bulawayo but it is irritating that the whole process has become a secret."

Mrs Moyo said the Government was referring companies to CABS, although the bank was not willing to divulge any information.

"We are failing to access any information from the Government as we are being told to approach CABS, but the bank is not at liberty to release any information about the people that would benefit from the fund.

"We have decided to engage the relevant ministries and find out if it is necessary for them to hide the names of the companies. We want to make a follow-up, monitor the progress and make sure that the economy in Bulawayo is revived," said Mrs Moyo.

The president of the Bulawayo Industries Businesses Association (BIBA), Mr Peter Nyoni, said they had not received feedback from the Ministry of Industry and Commerce.

"The issue has become complicated because we have been talking through the ministry, but now everybody has been referred to CABS. It is not even certain, which companies will benefit from the fund," said Mr Nyoni.

He said the conditions put in place by the ministry were a barrier for companies, as they could not meet the requirements.

"The disbursement of the fund has a bias in favour of big companies in the assumption that they employ many people, which is not always the case. The collateral also excludes several companies. For example if a company needs $100 000, it is required to have assets valued at $150 000 as collateral.

"However a group, which represents all businesses in Bulawayo will soon meet and engage the ministry to solve the issue," said Mr Nyoni.

Efforts to get a comment from the CABS regional manager, only identified as Mr Ngaaseke were fruitless as he was not in the office.

Mr Kevin Terry, who deals with the Dimaf applications from the CABS head office in Harare, could also not be reached for comment.

Finance Minister Tendai Biti launched the $40 million under Dimaf in October last year following a recommendation by the task force on the "Let Bulawayo Survive" campaign.

However, for the past three months the fund has been mired in controversy amid squabbling in the Inclusive Government with some saying it was not meant for Bulawayo companies alone.