Zupco, a sad story of things gone wrong

There was a time when it used to be the only reliable passenger transporter. In fact, Zupco was the Alpha and Omega in the public transport business. Its services stretched to every part of the country, leaving both urban and rural commuters satisfied.

The mention of the name Zupco during its heyday conjured various images in the minds of many people. Some imagined well-dressed conductors issuing tickets to passengers on board.

Then there were the ticket issuers stationed at bus termini as well as inspectors commonly referred to as ticket checkers.

The company had a policy that allowed families of its employees and senior citizens to travel free of charge.

But two decades down the line, the Zupco empire is crumbling.

While the company is still operational, there are no signs of its re-awakening. The parastatal is saddled with debts and has a depleted fleet.

Critics say poor management and corruption have brought Zupco to near collapse

A 77-year-old former driver, speaking on condition of anonymity, blamed corruption for not only the near-collapse of Zupco but also the company's failure to pay him his severance package.

"What pains me is that you dedicate yourself to work but at the end of the day you are left without benefits.

"Having worked for the company for many years, they should at least have given us a package to go home with. We will forever regret having worked with so much passion," said the former employee who has been trying to force the company to pay his dues.

The company has retrenched nearly 400 employees since 1999, citing viability problems.

Zupco, which used to boast of a running fleet of over 800 buses, is now understood to be operating less than 200 buses.

While blame has been placed on poor management, some observers believe the entry of private commuter omnibus operators into the transport sector affected Zupco operations.

Commuter omnibus operators have crowded out Zupco in urban routes while luxury coaches have stiffened competition on long-distance routes.

On the other hand, many people have been importing second-hand vehicles, reducing the number of commuters.

Observers say Zupco should have moved with the times and diversified its operations or purchased new vehicles.

Appearing before a Parliamentary Portfolio Committee on Local Government last week, the Minister of Local Government, Urban and Rural Development, Dr Ignatius Chombo, said Government would move in to save the parastatal.

He, however, acknowledged that times had changed and there was stiff competition in the transport sector.

Dr Chombo said plans were under way as agreed with Zupco for retrenchees to be paid their packages.

"Government financial support is still being awaited to pay off the arrears so that the members enjoy their pension benefits on retirement," he said.

"Zupco had a defined pension benefit fund for its employees and this was affected by the dollarisation of the economy in 2009. The arrears of US$1,7 million is beyond Zupco's financial capacity hence a decision was made to suspend the fund in December 2010.

"Meanwhile, monthly payment plans have been agreed with Zupco retrenches to pay their retrenchment packages."

Minister Chombo said the company was engaged in several court battles after being taken before the courts for failing to honour certain obligations.

He said such lawsuits had seen the parastatal losing a lot of money engaging lawyers.

"There have been many lawsuits against the company. In defending those cases, the company has to outsource legal services since we do not have an internal legal advisor," said Dr Chombo

The portfolio committee members also raised concern that some of the board members at Zupco had overstayed.

As part of its turnaround strategy, Minister Chombo has approved the company's 2011 to 2013 three-year strategic plan which focuses on recapitalisation of the company through acquisition of at least 100 buses per year.

Zupco has since bought 100 buses which are meant to service rural routes where there is less competition because of poor roads.

Zupco, once the pride of Zimbabwean roads, is undoubtedly facing a tough time and has lost credibility with the travelling public.