PRIME Minister Morgan Tsvangirai’s MDC-T party has demanded the immediate liquidation of Air Zimbabwe and insisted that tax payers’ money should not be used to bail out the debt-ridden airline.
Finance Minister Tendai Biti – who is also the party’s secretary general – has been blamed by airline and Zanu PF officials for allegedly refusing to release funds to recapitalise the airline which is struggling to fend-off restive creditors.
And in resolutions passed at the party’s national council meeting in Harare Saturday, the MDC-T said public funds should not be used to support the airline.
The party said Air Zimbabwe’s collapse was reflective of the general condition of most of Zimbabwe’s state enterprises.
“The chaos, mismanagement and incompetence at Air Zimbabwe is reflective of the general state of most parastatals,” the party said.
“The Party resolves that Air Zimbabwe Private Limited as it is defined right now should be shut down and closed immediately.
“The tax payers’ money should not be used to fund any corrupt and unsustainable parastatals.”
Air Zimbabwe – which is said to owe various suppliers some US$140 million – has been battling to fend off creditors now moving to attach its assets over the debts.
A Boeing 767-200 impounded at London’s Gatwick airport last Monday by American General Supplies over a US$1.5 million debt has still not been released and passengers due to have flown out to Harare remain stranded at a city hotel.
The seizure followed similar action in South Africa, where the company was recently refused ground handling services and had its aircraft briefly held, again over unpaid debts.
The MDC-T said the airline must be disbanded and a new, sufficiently capitalized company established.
“A new Zimbabwe airline that partners with a foreign investor should be formed that will take over the whole staff at Air Zimbabwe,” the party said.
Air Zimbabwe has since suspended South Africa flights for fear of losing its aircraft.
"We are not flying into South Africa. We are trying to secure funding to pay our debts in South Africa,” Acting chief executive Innocent Mavhunga said during the week.
"We are, however, still flying into Lusaka (Zambia) and Lubumbashi (DRC) as usual."