Ministries owe CMED $1,3 billion

Ministries owe CMED $1,3 billion

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By Lebo Nkatazo

ZIMBABWE'S Central Mechanical Equipment Department (CMED) is failing to procure fuel due to the non-payment of a $1,3 billion debt by line ministries, it emerged Tuesday.

A report by the parlimentary portifolio committee on transport said the CMED was struggling to also buy new vehicles for government departments due to exchange rate fiddling by central bank governor Gideon Gono.

The report said in part: "The committee was informed that CMED had problems with the procurement of fuel and that most ministries owed the organisation money up to $1,3 billion (revalued)."

It added allocated funds to acquire 150 vehicles had been eroded while $200 billion allocated for the purchase of 26 buses can now purchase only 10 due to the new exchange rate fixed by Gono.

"The total number of vehicles purchased to date on condition of service is 53 and 150 were still outstanding. The new exchange rate announced by the Reserve Bank governor of Z$250: US$1 will erode the value of the $95 billion left for the purchase of vehicles under the director's scheme."

Zimbabwe is going through its worst economic crisis in history with inflation hitting highs of 1200%. Several government departments have failed to stay within their budgets, a development blamed on the lack of a stable economic environment.

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