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Zvamaida Murwira Senior Reporter
Government is losing about $40 million annually through unregistered transport operators who do not pay statutory fees to the State, legislators have heard. Coach and Bus Operators Association chief executive officer, Mr Alex Kautsiro said Government’s failure to enforce strict compliance on unregistered transport operators have seen it losing millions of dollars in licence fees and income taxes, among other statutory financial obligations.

Mr Kautsiro said this at the weekend while making a presentation to a pre-budget meeting attended by parliamentary portfolio committee on Transport and Infrastructure chaired by Chegutu West MP Cde Dexter Nduna (Zanu-PF).

“The reason why there is a rise in illegal transport service is because the policy that was drawn up by Government that we should move to mass transport has not been supported both by enforcement and necessary statute that make it illegal for anyone to carry 13 passengers from Bulawayo on a black and yellow number plate.

Government is losing a lot of money and these are the issues that Parliament and the Ministry of Transport should address immediately,” said Mr Kautsiro. He said only a few imported buses were registered to formally operate as passenger service vehicles leaving the rest operating illegally.

“It means Government is losing $40 million per year according to our calculations. They will be no payment of licence fees, income tax and so forth and that is all money that is lost.” Earlier on, local manufacturers had castigated operators for preferring imports when they were assembling buses locally.

But Mr Kautsiro said they would not buy buses from local assemblers because they are expensive. He also claimed the buses did not fit into their model. “We are not buying from them. The same people that are supplying them with buses are supplying us with buses with finances to buy them. So they have a bad deal with their suppliers,” said Mr Kautsiro.

He castigated the insurance framework in which passengers were given only $350 saying that the amount was not enough to cover their hospital bills in the event of an accident.

“You go to an insurance company and you get $350 and you are told to go back to the bus operator. What is the purpose of the insurance that does not cover fully. This is the problem. The insurance should cover both the passenger and operator fully to a point where they recover,” said Mr Kautsiro.

Speaking at the same occasion, Zinara board chairperson Mr Albert Mugabe said there was need to transform part of parking fees collected by local authorities for road maintenance and rehabilitation.

“There is one particular challenge that is still outstanding that I think is very pertinent for parliament to take note of. When you park your vehicle in the city you are charged. You are charged to park your vehicle. For the vehicle to move there must be a road. That parking revenue at least in part must be ascribed to road maintenance and rehabilitation,” said Mr Mugabe.

“This is an issue that we have brought to the attention of our superiors and we are now bringing it again to the attention of Parliament. That we find it inappropriate that parking revenue is not channelled towards road maintenance and rehabilitation. This is something that we hope Parliament will assist us in rectifying.”