Home » Business » ZIMBABWE RAILWAYS OWES WORKERS 90 MLN USD IN UNPAID SALARIES

HARARE, The State-owned National Railways of Zimbabwe (NRZ) owes its workers 90 million US dollars in unpaid salaries, according to a report by the Parliamentary Committee on Transport and Infrastructural Development.

Employees are owed over 90 million USD in outstanding salaries while debts have ballooned to a staggering 176 million USD, says the Committee in its report on the turnaround strategy for the NRZ presented to Parliament recently. The committee says that out of a fleet size of 166 locomotives, only 60 are operational.

These average between 33 and 50 years old whereas a locomotive has a useful lifespan of at most 25 years. Out of a total of 7,153 wagons, 3,641 have been decommissioned for various defects, leaving only 3,512 in service; out of a fleet of 283

passenger coaches, only 108 are in use and these are in a deplorable state, says the report.

The Committee urged the government to inherit the NRZ debt. Government must take over, or, at the very least, guarantee the debt owed to employees if NRZ is to attract serious private investors. This should be done by Sept 30 2017, the Committee says.

The NRZ is a key player in terms of commercial and industrial bulk goods transportation in the country but its infrastructure has deteriorated in the last two decades, a situation made worse by a slump in economic activity which translated into low volumes for the railway.

At its peak in 1998, the NRZ moved more than 12 million tonnes of goods but last year, it moved less than three million tonnes.

Source: NAM NEWS NETWORK

Subcribe to my feedFollow on TwitterLike On Facebook Pinterest

Calendar

November 2017
MTWTFSS
« Oct  
 12345
6789101112
13141516171819
20212223242526
27282930 

Business News

Our Facebook Page