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parastatal continues to incur huge losses.

Debating the Finance Bill during its second reading in the Senate last Wednesday, Mr Chitaka said it was high time Treasury stopped draining national resources to support parastatals that were not bringing returns.

“Parastatals have continued to be a drain on the fiscus. They are like a cancer, which a doctor can stop when it’s just starting, but cut the finger or the whole arm before it affects the body.
“As Government, you should have the courage to say why continue pouring money into AirZim. Let it sink and channel the resources to other areas where there are returns,” he said.

However, Transport, Communication and Infrastructural Development Minister, Nicholas Goche, said the national airline could only be privatised if it was capitalised. He told parliamentarians recently that the debt overhand of about US$110 million was making it difficult for the airline to attract reputable investors.

Parastatals and State Enterprises Minister Gorden Moyo also told Parliamentarians that it was difficult to find an investor for Air Zimbabwe. He said the airline would find no taker if offloaded.
Air Zimbabwe is currently making losses of more than US$3 million per month due to a huge staff turnover and ageing equipment. The national airline has already indicated that it wants to downsize its staff complement to around 409 from 1 200.

The retrenchment has, however, been halted due to lack of funds.