New Zimbabwe.com

Council appeals to central government as Willovale won’t take bonds

THE Masvingo City Council has appealed to government after it failed to purchase vehicles from Willowvale Motor Industries (WMI) which demanded that the local authority should pay directly to Chinese manufacturers and in US dollars.
Minutes from the latest full council meeting show that the purchase of eight operational vehicles for the local authority’s deputy heads of departments at WMI, using the surrogate currency, had failed.
WMI is owned by Industrial Development Corporation and is one of the two major vehicle assemblers in the country.
The company resumed operations early this year following a joint venture with a Chinese firm, Beijing Automobile International Corporation.
WMW indicated to the local authority that the USD50 000 worth of vehicles should now be paid directly to the Chinese manufacturers.
“Willowvale had indicated that it is now a requirement for clients to pay directly to Chinese suppliers or manufacturers the foreign currency component of the vehicle purchase price thus the purchase of the operational vehicles had been affected by this requirement,” reads part of the minutes.
The local authority has since instructed Town Clerk Adolf Gusha to write a letter to the ministry of local government requesting the ministry to intervene and push the RBZ to prioritise the allocation of foreign currency to the local authority towards the procurement and delivery of the vehicles.
Reserve Bank of Zimbabwe last year introduced the $200 millon bond note facility as a measure to improve business transactions and ease cash shortages which had become a norm in Zimbabwe.Advertisement