Opinion / Columnist
Release Bulawayo's Dimaf names for transparency
03 Feb 2012 at 14:35hrs | Views
A few days after ZUPA called for speedy disbursement of the Distressed Industries and Marginalised Areas Fund (Dimaf) by Zimbabwe's Ministry of Industry and Commerce, the ministry announced a go ahead for CABS, the fund administrator, to start accepting applications from 58 shortlisted companies.
We are told by the Ministry of Finance Permanent Secretary Willard Manungo that 28 of the 58 companies have already applied for their share of the bailout fund with CABS availing USD15 Million.
ZUPA welcomes this response and hope that the shortlisted companies will now use the money well to kick-start the recovery of Bulawayo and Zimbabwe's dwindling industry.
ZUPA represents the interest of the millions of unemployed Zimbabweans. It is therefore natural that we will be expecting to work with the companies to whom this bailout package is being extended to get the people of Bulawayo back to work. ZUPA has a huge database of highly qualified Bulawayo residents eagerly looking forward to securing jobs in the companies that have been identified for bailout.
We are however concerned that the Ministry of Industry and Commerce has, as yet, failed to be transparent enough to release the names of the companies that have been shortlisted. We fail to understand why the people of Zimbabwe in general and the people of Bulawayo in particular should not be told openly who is getting Dimaf and why.
ZUPA, on behalf of the unemployed people now calls on the Ministry of Industry to publicly name the companies, what criteria was used to select the companies and what the expectations are on the companies.
We would want to know how the Government is going to evaluate and monitor the companies to ensure that there is value for money in the bailout.
ZUPA would also want to know what the Government is getting in return for the bail out. We have seen examples in Europe that when companies are bailed out, the government effectively gets shares in the companies or institutions as was the case with failing banks. Is the Zimbabwe Government getting anything in return? If not, is the bailout or the Dimaf being given as loans? If the money is a loan, what is the interest rate? If the money is not a loan, then it has to be clear what would happen if the companies fail to recover or to perform.
The Minister of Industry and Commerce Prof Welshman Ncube on Wednesday said, the Bulawayo Dimaf was just a start and his ministry would be moving to other regions, cities and towns. Given that Zimbabweans have demanded devolution, Bulawayo resident members of ZUPA are telling us that they are eager for the Ministry of Industry and the Ministry of Labour to guarantee that as long as there are unemployed people who are qualified in Bulawayo, bus loads are not going to come into the city from other towns far away to be given jobs ahead of Bulawayo residents.
We therefore ask that these guarantees be considered and a transparent mechanism or directive be given to the recipients of the Dimaf bailout that they have to considered local people first.
A year ago, research was carried out in Bulawayo on the de-industrialisation of the city. Recommendations were made by the authors and ZUPA attended the presentation of the report by ZIMCODD in Bulawayo last August.
One of the issues identified by ZUPA is that some of the so called big companies in Bulawayo closed shop because they had become subsidiaries of companies that had relocated to Harare or South Africa. These companies restructured and moved operations to elsewhere for a variety of reasons. It is therefore a view we hold that if these companies are given part of the $40 Million for their Bulawayo operations, they may just use it in their Harare or South African operations and thus defeat the very reason for the bailout. Has the Government put this as a condition that the money will not be used elsewhere?
It was also our finding that some of the companies were no longer competitive in the face of Chinese and Indian products during the scramble for the European market.
We therefore are not convinced that pouring money into so called former big companies will deliver sustainable recovery that will create jobs and business for smaller companies.
We believe that by restricting their attention to "former big companies," the Ministry may have missed an opportunity to consult further on which areas have opportunities for viability in the international market. It may well be the case that small to medium businesses competitively producing what the foreign markets need was the way to go.
With Zimbabwe set to rise again, and Facebook set to float for billions, it may well be that new innovative ideas should have been encouraged by offering part of the $40 Million Dimaf to emerging entrepreneurs.
As ZUPA, we have a vested interest in ensuring that there is value for the money and that the companies bailed out can grow and create jobs for our members. We would also want as responsible citizens to ensure that there is transparency to enable the residents of Bulawayo and the Government to hold these companies to account in the event that they fail to create jobs or honour their promises.
We see in the United Kingdom, they are holding those they bailed out like the Royal Bank of Scotland to account. We, as ordinary citizens need to hold those who handle monies on our behalf to account.
We are encouraging a bottom up model where decision in Government must be informed by the expressed views of the grassroots and hope that it is not too late for the government to consider extending part of the bailout to SMEs in Bulawayo.
We now call on the Ministry of Industry and Commerce to organise a feedback roundtable meeting in Bulawayo and release the names of the companies they are bailing out, the criteria used to shortlist them, how they will be evaluated and what will happen if they fail to deliver. ZUPA proposes to co-ordinate and chair.
We further call upon the companies and the local business leadership to help the ZUPA Matabeleland Provincial leadership ensure that the people of Bulawayo are given preference in the jobs that will be created. ZUPA has a huge database of CVs for the companies to consider in their recovery process.
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ZUPA is the Zimbabwe Unemployed People's Association (ZUPA) representing the interests of millions of unemployed Zimbabweans. It has representation in all provinces of Zimbabwe, with local communities choosing their own ward council leadership in a bottom up model of involving the communities in their own affairs.
For media enquiries or further information please contact us on email zupanational@gmail.com or call Zimbabwe numbers 0773026323 or 0773950193.
We are told by the Ministry of Finance Permanent Secretary Willard Manungo that 28 of the 58 companies have already applied for their share of the bailout fund with CABS availing USD15 Million.
ZUPA welcomes this response and hope that the shortlisted companies will now use the money well to kick-start the recovery of Bulawayo and Zimbabwe's dwindling industry.
ZUPA represents the interest of the millions of unemployed Zimbabweans. It is therefore natural that we will be expecting to work with the companies to whom this bailout package is being extended to get the people of Bulawayo back to work. ZUPA has a huge database of highly qualified Bulawayo residents eagerly looking forward to securing jobs in the companies that have been identified for bailout.
We are however concerned that the Ministry of Industry and Commerce has, as yet, failed to be transparent enough to release the names of the companies that have been shortlisted. We fail to understand why the people of Zimbabwe in general and the people of Bulawayo in particular should not be told openly who is getting Dimaf and why.
ZUPA, on behalf of the unemployed people now calls on the Ministry of Industry to publicly name the companies, what criteria was used to select the companies and what the expectations are on the companies.
We would want to know how the Government is going to evaluate and monitor the companies to ensure that there is value for money in the bailout.
ZUPA would also want to know what the Government is getting in return for the bail out. We have seen examples in Europe that when companies are bailed out, the government effectively gets shares in the companies or institutions as was the case with failing banks. Is the Zimbabwe Government getting anything in return? If not, is the bailout or the Dimaf being given as loans? If the money is a loan, what is the interest rate? If the money is not a loan, then it has to be clear what would happen if the companies fail to recover or to perform.
The Minister of Industry and Commerce Prof Welshman Ncube on Wednesday said, the Bulawayo Dimaf was just a start and his ministry would be moving to other regions, cities and towns. Given that Zimbabweans have demanded devolution, Bulawayo resident members of ZUPA are telling us that they are eager for the Ministry of Industry and the Ministry of Labour to guarantee that as long as there are unemployed people who are qualified in Bulawayo, bus loads are not going to come into the city from other towns far away to be given jobs ahead of Bulawayo residents.
We therefore ask that these guarantees be considered and a transparent mechanism or directive be given to the recipients of the Dimaf bailout that they have to considered local people first.
A year ago, research was carried out in Bulawayo on the de-industrialisation of the city. Recommendations were made by the authors and ZUPA attended the presentation of the report by ZIMCODD in Bulawayo last August.
It was also our finding that some of the companies were no longer competitive in the face of Chinese and Indian products during the scramble for the European market.
We therefore are not convinced that pouring money into so called former big companies will deliver sustainable recovery that will create jobs and business for smaller companies.
We believe that by restricting their attention to "former big companies," the Ministry may have missed an opportunity to consult further on which areas have opportunities for viability in the international market. It may well be the case that small to medium businesses competitively producing what the foreign markets need was the way to go.
With Zimbabwe set to rise again, and Facebook set to float for billions, it may well be that new innovative ideas should have been encouraged by offering part of the $40 Million Dimaf to emerging entrepreneurs.
As ZUPA, we have a vested interest in ensuring that there is value for the money and that the companies bailed out can grow and create jobs for our members. We would also want as responsible citizens to ensure that there is transparency to enable the residents of Bulawayo and the Government to hold these companies to account in the event that they fail to create jobs or honour their promises.
We see in the United Kingdom, they are holding those they bailed out like the Royal Bank of Scotland to account. We, as ordinary citizens need to hold those who handle monies on our behalf to account.
We are encouraging a bottom up model where decision in Government must be informed by the expressed views of the grassroots and hope that it is not too late for the government to consider extending part of the bailout to SMEs in Bulawayo.
We now call on the Ministry of Industry and Commerce to organise a feedback roundtable meeting in Bulawayo and release the names of the companies they are bailing out, the criteria used to shortlist them, how they will be evaluated and what will happen if they fail to deliver. ZUPA proposes to co-ordinate and chair.
We further call upon the companies and the local business leadership to help the ZUPA Matabeleland Provincial leadership ensure that the people of Bulawayo are given preference in the jobs that will be created. ZUPA has a huge database of CVs for the companies to consider in their recovery process.
-------------------------
ZUPA is the Zimbabwe Unemployed People's Association (ZUPA) representing the interests of millions of unemployed Zimbabweans. It has representation in all provinces of Zimbabwe, with local communities choosing their own ward council leadership in a bottom up model of involving the communities in their own affairs.
For media enquiries or further information please contact us on email zupanational@gmail.com or call Zimbabwe numbers 0773026323 or 0773950193.
Source - ZUPA President
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