News / Local
Biti reluctant to funding ailing Byo companies, uses money in Harare
29 Jun 2011 at 05:54hrs | Views
Zimbabwe Finance Minister Tendai Biti who is also MDC-T Secretary General has been accused of ignoring the dramatic collapse of Bulawayo industries when he sits on over $200 million fund meant for the revival of the industries in the country second largest city.
This was revealed by MDC-N leader Prof Welshman Ncube who is also Industry and Commerce Minister. Prof Ncube said Biti was reluctant to release funding to support ailing companies especially in Bulawayo where 87 entities have closed shop.
Welshman Ncube said the $200 million was part of the money from IMF which was set for development.
"The money was supposed to loan distressed companies which will then repay and generate more income to repay the loan. Our business cannot access loans to finance industry; therefore government should play a critical role in supporting companies," he said.
Instead of financing companies, Biti used part of the IMF $500 million the money for the construction of Harare International Airport and Joshua Nkomo International Airport. There is still $275 million which has been in the bank for over two years, according to Ncube.
Biti is said to be arguing that the $275million is for emergencies and cannot be used to fund companies.
"If Biti had listened to cabinet two year ago, that money could have been put on a revolving fund and generated more funding that could be used to revive industries," said Prof Ncube.
Prof Ncube said each of the industries in Bulawayo should get at least $1 million as part of a long term solution to the challenges facing industries.
Biti could not be reached for comment on Tuesday.
This was revealed by MDC-N leader Prof Welshman Ncube who is also Industry and Commerce Minister. Prof Ncube said Biti was reluctant to release funding to support ailing companies especially in Bulawayo where 87 entities have closed shop.
Welshman Ncube said the $200 million was part of the money from IMF which was set for development.
"The money was supposed to loan distressed companies which will then repay and generate more income to repay the loan. Our business cannot access loans to finance industry; therefore government should play a critical role in supporting companies," he said.
Instead of financing companies, Biti used part of the IMF $500 million the money for the construction of Harare International Airport and Joshua Nkomo International Airport. There is still $275 million which has been in the bank for over two years, according to Ncube.
Biti is said to be arguing that the $275million is for emergencies and cannot be used to fund companies.
"If Biti had listened to cabinet two year ago, that money could have been put on a revolving fund and generated more funding that could be used to revive industries," said Prof Ncube.
Prof Ncube said each of the industries in Bulawayo should get at least $1 million as part of a long term solution to the challenges facing industries.
Biti could not be reached for comment on Tuesday.
Source - .
