Opinion / Columnist
PDP statement on TelOne Loan - Chinamasa continues to fuel the looting machine
06 Apr 2016 at 13:52hrs | Views
We are rather surprised that Parliament has once more approved a further $98, 6 million loan from the Export Import Bank of China to fund TelOne's backbone network expansion. This comes as a closely related state enterprise, NetOne, is mired in corruption scams whose full extent we are still to learn. The argument that NetOne and TelOne are different organisations is trite and uninspiring. They have the same shareholder, the same patronage culture and fall under the same minister.
This approach of treating state enterprises as separate entities is a silo mentality which continues to cost the country hundreds of millions of dollars due to duplication and the failure to look at the economy holistically.
In our understanding, an infrastructure sharing agreement was being considered between these two companies in order to minimize inefficiency, avoid duplication and cut infrastructure development costs, which certainly makes business sense.
The fact that Chianamasa has given undertakings to manage the loan proceeds does not remove the fact that the ZANU(PF) looting machine which feeds of state loans will not come into effect to fuel the ZANU(PF) patronage cabal especially now as the economy titters on the brink of collapse. State enterprise loans continue to feed the secret economy of patronage and political favours.
As PDP our approach would be first to complete fixed asset audit of the two parastatals, determine to what extent the infrastructure can be shared and only then consider any further expansion and loans if necessary. The latest reports on the efficient use of infrastructure within Net One have indicated that the equipment there still has a significant shelf life anyway which could be shared with TelOne. But of course this has been over looked as inconvenient.
Our other problem is that our parliamentarians are not doing enough investigations and research before they approve things and ZANU (PF) bulldozes issues while lying that this time they will behave differently. They will not because accountability and transparency are not in their DNA.
The saddest reality is that this loan is a twenty year loan. Given the acceleration of technological changes, especially in telecommunications, we are likely to still be paying for equipment which will most likely be obsolete in the next five years or so.
As PDP our view is that all state enterprises must all first be subject to forensic audits before getting any new loans are approved. In addition, we will need to change the management culture and the continuing fraud that is happening within them. We also need fresh nonpartisan professionals to run them in the best interests of the country.
Only until we have dismantled this ZANU (PF) looting machine can we begin to see real development which benefits ordinary citizens.
Another Zimbabwe is possible!
This approach of treating state enterprises as separate entities is a silo mentality which continues to cost the country hundreds of millions of dollars due to duplication and the failure to look at the economy holistically.
In our understanding, an infrastructure sharing agreement was being considered between these two companies in order to minimize inefficiency, avoid duplication and cut infrastructure development costs, which certainly makes business sense.
The fact that Chianamasa has given undertakings to manage the loan proceeds does not remove the fact that the ZANU(PF) looting machine which feeds of state loans will not come into effect to fuel the ZANU(PF) patronage cabal especially now as the economy titters on the brink of collapse. State enterprise loans continue to feed the secret economy of patronage and political favours.
As PDP our approach would be first to complete fixed asset audit of the two parastatals, determine to what extent the infrastructure can be shared and only then consider any further expansion and loans if necessary. The latest reports on the efficient use of infrastructure within Net One have indicated that the equipment there still has a significant shelf life anyway which could be shared with TelOne. But of course this has been over looked as inconvenient.
The saddest reality is that this loan is a twenty year loan. Given the acceleration of technological changes, especially in telecommunications, we are likely to still be paying for equipment which will most likely be obsolete in the next five years or so.
As PDP our view is that all state enterprises must all first be subject to forensic audits before getting any new loans are approved. In addition, we will need to change the management culture and the continuing fraud that is happening within them. We also need fresh nonpartisan professionals to run them in the best interests of the country.
Only until we have dismantled this ZANU (PF) looting machine can we begin to see real development which benefits ordinary citizens.
Another Zimbabwe is possible!
Source - Vince Musewe - Secretary for Finance and Economic Affairs
All articles and letters published on Bulawayo24 have been independently written by members of Bulawayo24's community. The views of users published on Bulawayo24 are therefore their own and do not necessarily represent the views of Bulawayo24. Bulawayo24 editors also reserve the right to edit or delete any and all comments received.
