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Business Reporter
THE Minister of Transport and Infrastructural Development, Felix Mhona, yesterday announced a six-member interim board for Air Zimbabwe following the expiry of the contract of the airline’s administrator last month.

Mr Andrew Bvumbe chairs the new board.

Air Zimbabwe was placed under a reconstruction administration of Grant Thornton in October 2018 in terms of Reconstruction of State-Indebted Insolvent Companies Act (Chapter 24:27).

This was to prevent legal action and attachment of the entity’s assets by its creditors as it faced a combination of huge debts, viability problems and a weak balance sheet.

In a statement, Minister Mhona said Air Zimbabwe administrator Mr Reggie Saruchera’s term had come to an end and that Government, as the major shareholder, was obliged to put in place interim mechanisms to ensure the entity continues its operations smoothly.

“His Excellency, the President has approved a mechanism, which shall see the airline being placed under the stewardship of an interim board,” he said.

Mr Bvumbe is currently the head of Zimbabwe Debt Management Office in the Ministry of Finance and Economic Development.

Other interim board members are Mr Pfungwa Kunaka who also presently serves in the Ministry of Finance and Economic Development as head of Public Sector Investment Programme and chief director for Public Procurement and Disposal of Public Assets — Corporate Governance Unit in the Office of the President and Cabinet, Dr Michael Musanzwika.

Also, part of the board is Advocate Kingstone Magaya (ex officio) who is the legal advisor in the Ministry of Transport and Infrastructural Development, Mr Nyikadzino Chifema, a deputy director responsible for strategic policy planning in the Ministry of Transport and Infrastructural Development as well as Zimbabwe Tourism Authority acting chief executive officer, Mr Givemore Chidzidzi.

The interim board will serve in that position until substantive board members have been appointed.

Section 27 of the Reconstruction of State-Indebted Insolvent Companies Act [Chapter 24:27], mandates the interim board among other duties to take over from the administrator and assume the management of the company and manage the entity in such manner as it may consider most economic and most likely to promote the interests of the members and creditors of the firm. The Government is set to assume Air Zimbabwe’s debt, which has been validated as $349 million (local) and US$30 million.

The interim board also oversees the finalisation and implementation of Air Zimbabwe’s business plan as approved by Cabinet, revisit the organisational structure and make recommendations to the ministry on proposed changes and finalise the production of audited accounts for the airline, among others.

In view of the difficult financial climate and operational challenges, Minister Mhona said Air Zimbabwe remains a critical entity hence the Government will do all in its power to sustain operations and viability of the airline.