News / National
CMED fails to secure $800k vehicle debt
26 Sep 2014 at 06:19hrs | Views
MORE than a year after the country's 2013 general elections, the Central Mechanical Engineering Department (CMED) is still struggling to secure more than $700,000 owed to people whose vehicles were hired by government for the July 31 elections.
Transport and Infrastructural Development Deputy Minister Petronella Kagonye told parliament on Wednesday that the huge doubt was haunting the ministry.
Kagonye explained that the CMED did not have the capacity to meet the vehicle needs of the 2013 harmonised elections due to the "huge magnitude of the programme."
"The company went on to subcontract individuals with their own vehicles to complement the CMED fleet," she said.
"However, after CMED realised that Zimbabwe Electoral Commission was having challenges in fulfilling its obligation, CMED took it upon itself to pay some of the private individuals from its own resources." Kagonye said payments were made on a province by province basis and so far five provinces had been paid in full.
"Due to other commitments, CMED is no longer in a position to meet the bill of the outstanding $769,063.62 and it is constantly engaging ZEC to honour its obligations," she said.
"ZEC's position is that treasury is yet to disburse funds budgeted for the elections to them.
"Once that is done, ZEC will be in a position to remit the outstanding balance, which is about $4,1 million to CMED, which will in turn pay off the outstanding amount of the $769,063.62 due to members of the general public whose vehicles were hired."
She said CMED's capacity to make further payments from its own coffers was constrained by the $16 million debt the organisation was owed by government ministries.
Transport and Infrastructural Development Deputy Minister Petronella Kagonye told parliament on Wednesday that the huge doubt was haunting the ministry.
Kagonye explained that the CMED did not have the capacity to meet the vehicle needs of the 2013 harmonised elections due to the "huge magnitude of the programme."
"The company went on to subcontract individuals with their own vehicles to complement the CMED fleet," she said.
"Due to other commitments, CMED is no longer in a position to meet the bill of the outstanding $769,063.62 and it is constantly engaging ZEC to honour its obligations," she said.
"ZEC's position is that treasury is yet to disburse funds budgeted for the elections to them.
"Once that is done, ZEC will be in a position to remit the outstanding balance, which is about $4,1 million to CMED, which will in turn pay off the outstanding amount of the $769,063.62 due to members of the general public whose vehicles were hired."
She said CMED's capacity to make further payments from its own coffers was constrained by the $16 million debt the organisation was owed by government ministries.
Source - Chronicle