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Mr Christopher Chitindi

Oliver Kazunga, Acting Business Editor
Parliament has urged Treasury to clear Air Zimbabwe’s debt to the International Air Transport Association (IATA).

Parliamentary Portfolio Committee on Transport and Infrastructural Development chairperson Mr Christopher Chitindi said this while presenting a report in Parliament yesterday.

He also called on the Government to expedite the privatisation of the parastatal.

“The restricting of Air Zimbabwe, along the lines of privatisation needs to be expedited.

“Meanwhile, Treasury support is sought with regards to the IATA clearing house and the association’s operational safety audit which both require about $13 million,” he said.

As a result of the IATA debt, the flag career has since been suspended from the world aviation body.

“The IATA clearing house debt, in particular, has since shot up from $2.6 million to the current $4.6 million, and the figure keeps on ballooning.

“Without the engagement and repayment of IATA fees, Air Zimbabwe remains technically insolvent.”

IATA’s system settles accounts between the world’s airlines, airline-associated companies and travel agencies.

Readmission into IATA would allow Air Zimbabwe passengers on other airlines to destinations that the flag carrier does not ply but under the banner of the national airline through an aviation industry partnership.

It is also believed that the privatisation of Air Zimbabwe alongside with some State enterprises is expected to go a long way in making the underperforming entities attractive to potential investors.

Transport and Infrastructural Development Minister Dr Joram Gumbo has said Air Zimbabwe would start scouting for a potential investor once Treasury takes over its debt that has accumulated to about $330 million.

In July 2017, Cabinet approved the assumption of over $1 billion worth of debts accumulated by some strategic State enterprises including Air Zimbabwe and Ziscosteel.

The Government was determined to turn around the fortunes of parastatals, especially those that have immediate impact to economic recovery.

However, the hunt for investors and technical partners for some of the targeted parastatals has continued at a snail’s pace given that the companies are saddled with huge debts.

@okazunga