News / National
Mugabe grants Air Zimbabwe immunity from attachment
26 Nov 2015 at 05:17hrs | Views
PRESIDENT Robert Mugabe has granted Air Zimbabwe immunity from attachment and execution of its properties following the signing of a law temporarily shutting the door on the seizure of its assets until July 2018.
President Mugabe recently signed into law amendments to the Air Zimbabwe Corporation (Repeal) Act by extending the provisions of the State Liabilities Act to give the airline breathing space against creditors for nearly three years.
The move is aimed at allowing the parastatal to repay its creditors without the threat of losing its key equipment, including planes.
"New section inserted in Act No. 4 of 1998 (1) The Air Zimbabwe Corporation (Repeal) Act No4 of 1998 is amended by the insertion of the following section after section 9-9A Legal proceedings against Corporation successor companies: The State Liabilities Act Chapter (22:13) applies with necessary changes to legal proceedings against the following successor companies to the corporation - (a) Air Zimbabwe (Private) Limited; and (b) Air Zimbabwe Holdings (Private) Limited.' (2) Subject to subsection (3), the amendment effected by subsection (1) applies to all legal proceedings against the successor companies specified in section 9A of the Air Zimbabwe Corporation (Repeal) Act (No4 of 1998 which were commenced or completed before the date of commencement of this Act. (3) Section 9A of the Air Zimbabwe Corporation (Repeal) Act (No 4 of 1998) shall be deemed to be repealed on the 31st July, 2018," reads part of the amended law.
The national carrier needs about $1 billion to recapitalise.
Some of its problems have been blamed on corruption and mismanagement. According to a transport parliamentary committee report, Air Zimbabwe was facing operational challenges arising from a number of reasons ranging from high operating costs, low load factors, debt overhang, and lack of "clear-cut separation of powers" between management, board and the Ministry of Transport.
Serious under capitalisation, past regulatory environment, untimely implementation of turn-around strategies, and unsettled labour disputes were also cited. "The airline's top five creditors are ENNA, ASECNA, CATIC, Aero Industrial Sales and American General Supplies. The committee was informed that creditors are always threatening to cut their services if the airline does not pay," said the parliamentary committee.
"The airline had experienced an exodus of critical manpower such as pilots, engineers and flight dispatchers. "Loss of skilled manpower is as a result of the Airline's inability to match competitive remuneration packages offered within and outside the region. "The Committee was told that if this trend continues unabated the airline runs the risk of being unable to deliver service to its clients."
President Mugabe recently signed into law amendments to the Air Zimbabwe Corporation (Repeal) Act by extending the provisions of the State Liabilities Act to give the airline breathing space against creditors for nearly three years.
The move is aimed at allowing the parastatal to repay its creditors without the threat of losing its key equipment, including planes.
"New section inserted in Act No. 4 of 1998 (1) The Air Zimbabwe Corporation (Repeal) Act No4 of 1998 is amended by the insertion of the following section after section 9-9A Legal proceedings against Corporation successor companies: The State Liabilities Act Chapter (22:13) applies with necessary changes to legal proceedings against the following successor companies to the corporation - (a) Air Zimbabwe (Private) Limited; and (b) Air Zimbabwe Holdings (Private) Limited.' (2) Subject to subsection (3), the amendment effected by subsection (1) applies to all legal proceedings against the successor companies specified in section 9A of the Air Zimbabwe Corporation (Repeal) Act (No4 of 1998 which were commenced or completed before the date of commencement of this Act. (3) Section 9A of the Air Zimbabwe Corporation (Repeal) Act (No 4 of 1998) shall be deemed to be repealed on the 31st July, 2018," reads part of the amended law.
Some of its problems have been blamed on corruption and mismanagement. According to a transport parliamentary committee report, Air Zimbabwe was facing operational challenges arising from a number of reasons ranging from high operating costs, low load factors, debt overhang, and lack of "clear-cut separation of powers" between management, board and the Ministry of Transport.
Serious under capitalisation, past regulatory environment, untimely implementation of turn-around strategies, and unsettled labour disputes were also cited. "The airline's top five creditors are ENNA, ASECNA, CATIC, Aero Industrial Sales and American General Supplies. The committee was informed that creditors are always threatening to cut their services if the airline does not pay," said the parliamentary committee.
"The airline had experienced an exodus of critical manpower such as pilots, engineers and flight dispatchers. "Loss of skilled manpower is as a result of the Airline's inability to match competitive remuneration packages offered within and outside the region. "The Committee was told that if this trend continues unabated the airline runs the risk of being unable to deliver service to its clients."
Source - chronicle
