BY TAFADZWA MHLANGA

DESPITE the deteriorating operating environment in the country, Unifreight’s revenue was up 229% to $46,2 million owing to good customer services and fleet availability in the third quarter period ended September 30, 2019.

In a trading update, Unifreight recorded a profit of $12,8 million compared to the previous year’s profit of $1,2 million.During the period under review, earnings before interest, tax, depreciation and amortization (EBITDA) increased by 449% to $16,4 million.

“Revenue generation continues to be positive from all the group’s brands. The results for Q3 2019 (third quarter) are still good, despite a deteriorating business climate in the country. Revenue is up $46,2m (229%) on prior year, and $37,6m (130%) ahead of budget. EBITDA is up $16,4m (449%) on prior year, $14,6m (263%) ahead of budget,” said the company secretary Moreblessing Mukamba.

“We are pleased to report a profit of $12,8m for Q3 2019, which is $10,1m ahead of budget and $11,6m ahead of the previous year. The positive out-turn is attributed to good customer care and service, consistency in fleet availability and alignment in business operations.”

Mukamba said the group continues to feel the pinch of the economic upheavals being experienced in the country resulting in the increase of operational expenses due to foreign currency shortages and hyperinflation.

He added that fuel and repairs and maintenance (R&M) costs remained within budget, however, the company faced fuel shortages with the R&M costs spiking due to the fluctuation of the foreign currency exchange rate which had a direct impact on procurement of spares.

The group’s major focus will be on growing revenues, ensuring right pricing and maintaining costs within threshold.Unifreight seeks to focus on growing volumes on the low margin less than truckload in the Swift business, which is yielding positive results and the specialised dedicated service through their Bulwark brand.

Skynet Worldwide Express Zimbabwe which operates under Swift Transport is also expanding its footprint on the international courier service.Unifreight Africa Limited (formerly Pioneer Corporation Africa Limited) was incorporated in Zimbabwe in 1970. It is a holding company of a group of companies primarily involved in the road transport industry whose activities include inter-city freight consolidations, the distribution of general goods, and an international courier service.

BY MOSES MATENGA

China, Zimbabwe’s long-time ally, yesterday reacted angrily to Finance minister Mthuli Ncube’s budget announcement, saying the figure mentioned as having been given to the country was much lower than what was availed by the Asian giant.

In his budget presentation, Ncube said Zimbabwe received over US$3,6 million from China under the development partner support received through bilateral channels.
“This is very different from the actual situation on the ground,” the Chinese embassy said in a statement.

“In the meantime, the embassy has noted that in the statement, among development partner support received by the Zimbabwean government through bilateral channels, the figure of bilateral support provided by China to Zimbabwe is US$3 631 500. This is very different from the actual situation on the ground,” the statement read.

The embassy said its records showed that from January to September 2019, the actual bilateral support provided to Zimbabwe by China was US$136,8 million.

“Such a figure does not include the other bilateral supports such as the expense of expert assistance, embassy donations to local vulnerable groups and so on,” the statement said.
The embassy said relevant departments of the Zimbabwean government should make comprehensive assessments on the statistics of bilateral support and accurately reflect the actual situation when formulating the budget statement.

“The embassy believes that with the efforts of Zimbabwean government and people, and with international support, Zimbabwe will achieve prosperity and development and realise the vision 2030,” the statement read.

Ncube was not immediately available for comment as he is in the United Arab Emirates where he is part of President Emmerson Mnangagwa’s delegation.The Information ministry said government has noted the query raised by the Chinese embassy.

“Necessary consultations are underway to establish a common accounting position. We thank the Chinese government for their support,” the ministry said in a statement.

BY FREEMAN MAKOPA

COMEDIENNE Felistas “Mai Titi” Edwards yesterday dismissed social media gossip that she had earned her keep through prostitution.Mai Titi told NewsDay Life & Style that claims by socialite Jackie Ngarande that the former lived off sex work were baseless and unfounded as she runs luxury stores in the central business district.

Mai Titi, who recently bought a house and is building another two-storey mansion, said an associate of Ngarande fuelled the rumours after having been engaged to put up curtains at the latter’s house.

“Lately, people are bitter that I bought a house and jealous can make someone lie about people they don’t know. Someone went to Jackie’s house to put curtains and they started gossiping about me, that’s when she said do you know that Mai Titi drilled a borehole for the community and the house is not hers, so it’s crazy, how can I put a borehole at the house which is not mine?” Mai Titi quipped.

“Imagine I paid US$5 000 for that borehole and they say it’s not mine. Thereafter she called the person and that person phoned me now because she thought we were not friends, so she told me that that’s what Jackie is saying. That’s why I got angry and made a video to set things straight.”

This was after Mai Titi had posted a video hitting back at Ngarande, whom she accuses of spreading gossip about her.She, however, refused to disclose where the properties are located.

“I work hard; I have shops all over town, luxury and epic stores known as “Zvemukati kwaMai Titi. I think my work is seen everywhere. I don’t do (dirty) businesses like these stupid clouts are doing. I am a hard working single mother,” she said.

“I know my house is causing all this alarm, of which it’s not even the only one. I am actually building a double-storey (house) and everyone knows that, so people should not be jealous, but should work hard and believe in God.”

Mai Titi, who wears many hats including gospel artiste, entrepreneur and MC, aid she was “a prayer warrior” and earned her money through hard work.

In March last year, she received an award as the Top Female Entertainment and Social Media Enterprise Business Leader of the Year Award (2018). She was presented the award by the Women’s Business and Leadership Awards.

BY RICHARD MUPONDE

MDC leader Nelson Chamisa will not enter into dialogue with his arch-rival President Emmerson Mnangagwa as long as Zanu PF keeps on scoffing at the opposition party’s preconditions, an MDC executive has said.

“We have spoken about dialogue and its benchmarks, it is up to Zanu PF to take it or leave as they stole the election,” MDC national chairperson Thabitha Khumalo (pictured) said yesterday.

“There is no contemplation of holding talks with Zanu PF and its leader Emmerson Mnangagwa before the end of the year to solve the economic and political crises the country is facing.”
There have been growing calls for Chamisa and Mnangagwa to dialogue and solve the country’s political and economic crisis. Churches, political players and economists have been pressuring the two antagonists to put the plight of the people first and enter into sincere dialogue.

Chamisa has snubbed the dialogue between Mnangagwa and fringe losing presidential candidates in last years’ general elections, demanding that any dialogue with the Zanu PF leader will have to be predicated in his admission that he was not a legitimate leader, apart from engaging a foreign and independent mediator.

The MDC has refused to recognise Mnangagwa as President, accusing him of stealing last year’s election, and its MPs have on repeated occasions walked out on him in Parliament.

Zanu PF has scoffed at the demands, but insists it was ready to dialogue with the youthful leader and his party, seen by many as the custodian of the keys to economic recovery for the country pummelled by hyperinflation and shortages of electricity and fuel.

But Zanu PF had seemed warning up for talks when the MDC did not mention its legitimacy demand in a statement released after the party’s national executive meeting held at Richard Morgan Tsvangirai Building, a fortnight ago.

Mnangagwa’s government seemed to have adopted a conciliatory tone saying there was need to depolarise the country and focus on developmental issues.

But Khumalo said there was no likelihood of talks between Chamisa and Mnangagwa this year as long as the latter does not accede to the opposition’s set of demands. The MDC is calling on Sadc and the African Union to intervene and mediate to save the suffering masses.

Zanu PF spokesperson Simon Khaya Moyo said the opposition was playing games with the people and should concentrate on the 2023 elections for them to be relevant.

“What are their demands? They should tell us their demands. We are not aware of them. These people have been saying a lot, they are playing games with the people. The issue of legitimacy is irrelevant. The matter went to the Concourt (Constitutional Court) and it made a ruling that the legitimate leader is President Mnangagwa. What can we do about what was said by the highest court on the land? They want us to reverse that?” Moyo charged.

BY CHARLES LAITON

MDC vice-president Tendai Biti has rekindled his $15 million retirement claim against First Mutual Holdings Limited (FMH) after the insurance company said it would only pay him less than what was agreed upon reaching the retirement age of 60.

Initially, Biti dragged FMH to court over the same issue in August this year, but the matter was not pursued further culminating in the present lawsuit.In summons filed at the High Court this week, the Harare East opposition MP said in 1993 while he was a partner with Honey and Blanckenberg, his pension contributions were with his consent converted by FMH into an annuity policy.

“The annuitisation phase commenced with a payment of $15 648,04 and the written projection given by defendant (FMH) was that upon attaining the retirement age of 60, plaintiff would be paid a capital value of $4 133 593 and an annual pension of $782 066,47 giving a total assured sum of $15 000 000,” he said.

“In breach of the agreement between the parties and taking advantage of the changes in currency that occurred in 2009, defendant has unilaterally claimed that as at March 2009, the value of plaintiff’s policy was US$196,76 and US$327,28 as at December 31, 2015.”

The MDC deputy president said FMH’s unilateral position means that it will, upon his retirement at the age of 60, pay less than the agreed value of the annuity policy.

“In terms of the purchasing power parity theory, which constitutes an integral tacit term of the insurance relationship between the parties, plaintiff (Biti) is entitled to a payment which preserves and reflects the total value by which he was insured,” he said.

Biti further said despite this being the agreement between the parties, FMH has refused, even in the light of the findings made by a presidential commission of inquiry, to take a position which recognises and upholds the essence of what was agreed to rendering it necessary for the court to declare the correct position to guide the parties. The matter is pending.

BY MTHANDAZO NYONI

GARMENT maker Paramount Garments says the interbank market, which was introduced to ease foreign currency shortages, has not been useful to it as the firm has failed to access forex through the system due to unclear allocation criteria.

The government launched the platform in February this year in an effort to curb a booming parallel market for foreign currency.Paramount Garments managing director Jeremy Youmans told NewsDay in an e-mailed response that the platform was yet to gain traction as they were failing to access forex.

“The interbank market has not been of use to us. The principle set up by the RBZ [Reserve Bank of Zimbabwe] was that there would be priorities on allocation of the funds. It is difficult to get to the bottom of who is doing the allocating as each party blames the other,” he said.

“We are a significant exporter but we are still a net importer ie we import more than we export. This is because the raw materials we need to manufacture garments for the local market have to be imported,” Youmans said.

By doing the value addition of garments in Zimbabwe, Youmans said they were employing large numbers of people and earning the country large amounts of forex. He said they were also manufacturing for the local market.

“We create a significant amount of import substitution, as the finished garments would require vastly more foreign currency than the raw materials do. All other clothing companies I am aware of have the same issue. This is stunting our ability to grow, employ and realise the industrialisation we are all trying to achieve,” he said.

As a way forward, Youmans said the criteria for allocation needed to be revisited and enforced.“This is not an onerous task. Now that electricity and fuel are no longer being subsidised, more forex should be available to support the manufacturing sector to import those raw materials not manufactured locally and capital equipment to upgrade our operations,” he said.

BY FIDELITY MHLANGA

STATE-OWNED entities, Zimbabwe Special Economic Zones Authority (Zimseza), Fidelity Printers and Refiners (FPR) are embroiled in a messy car import scam after details emerged that they took delivery of luxury vehicles supplied by local car dealer, Solutions Motors which illicitly imported the vehicles without paying customs duty.

Sources told NewsDay that both Zimseza and FPR were supplied with Toyota Hilux vehicles by the car dealer who contravened the Customs and Excise Act by not paying duty at the border post.

The shenanigans came to light after a blitz by Zimbabwe Revenue Authority (Zimra) unearthed the manipulation of customs clearance certificates in a dragnet that has already claimed the scalps of several customs officials.

NewsDay Business is reliably informed that the police commercial crime division is investigating the matter under case number 726/11/19.

Police spokesperson Assistant Commissioner Paul Nyathi could neither confirm nor deny when contacted for comment.” My guys are checking on the issue. They will call you,” he said curtly.

Zimseza CEO Edwin Kondo admitted the company took delivery of fraudulently imported vehicles from Solutions Motors.“However, please note that Zimseza is co-operating fully with Zimra and the ZRP. You can call them to verify. Further, the importer of the vehicles was our local supplier, Solutions Motors. We were clear that we were buying cars from them as a local supplier and the process of getting them in the country, including payment of duty, is with them,” Kondo said.

“Kindly call Solutions Motors for detailed responses on the way they handled the transactions. On our part, we are pressing the supplier to honour the laws of the country and honour whatever statutory payments that need to be done. We understand some duty payments have already been done. We are innocent victims in the whole case, as we need the vehicles for operational purposes. As Zimseza, we fully abide by the laws of the country on a strict basis.”

Solutions Motors managing director Patrick Siyawamwaya was not reachable for comment. He did not respond to text messages sent to him.FPR chief executive Fredrick Kunaka was evasive when reached for comment.

“I will not be able to say you are correct because ordinarily if a vehicle is registered. I wouldn’t tell if duty was paid or not. That I wouldn’t be aware, I would not be able to say whether what you saying is correct,” he said.

The car import scandal has prejudiced Zimra of millions of dollars in potential revenue as car dealers, individuals, corporates worked in cahoots with the tax authority officials to illicitly import luxury vehicles that include Toyota Fortuners, Land Cruisers, Mercedes Benz, Ford Rangers and Toyota Corollas.

The syndicate, which includes Zimra officers, was taking advantage of the taxman’s manual system to manipulate the customs clearance certificate to under-declare vehicles at all the country’s ports of entry.

Zimra over the weekend released a list of 433 vehicles detailing registration numbers, chassis numbers, vehicle type and owner’s name in a vehicle verification exercise on cars suspected to have been smuggled.

“The commissioner-general of the Zimbabwe Revenue Authority is hereby notifying the owners of vehicles listed below to visit Zimra loss control offices at ZB Centre in Harare for a vehicle registration verification. The vehicle owners are instructed to bring all customs clearance documents pertaining to their vehicles not later than November 23, 2019,” Zimra said in a notice.

Efforts to get a comment from Zimra were fruitless at the time of going to print.

Paidamoyo Muzulu

IN the aftermath of Finance minister Mthuli Ncube’s budget that sounded more like was crafted in some Western world capital and delivered in Harare, many people may have missed the assault on our parliamentary democracy by Zanu PF.

First, a cursory look at the 2020 budget statement; Ncube had no qualms to once again nail his colours to the mast as a neo-liberalist, a belief that capital and markets would haul Zimbabwe out of the rut.

Without serious consideration, Ncube removed subsidies on grain — maize — and for the first time in this hyperinflationary environment, millions in urban areas will be queueing for food handouts from donor agencies as their incomes will fall far short to buy basics.

Neo-liberalism has been ditched and exposed as a great fraud even by former kingpins at Brettonwoods institutions such as economist Joseph Stiglitz.

Stiglitz in a recent opinion titled The end of neo-liberalism and the rebirth of history, wrote: “The credibility of neo-liberalism’s faith in unfettered markets as the surest road to shared prosperity is on life-support these days. And well it should be. The simultaneous waning of confidence in neo-liberalism and in democracy is no coincidence or mere correlation.

Neo-liberalism has undermined democracy for 40 years.”He continued: “In rich and poor countries alike, elites promised that neo-liberal policies would lead to faster economic growth, and that the benefits would trickle down so that everyone, including the poorest, would be better off. To get there, though, workers would have to accept lower wages, and all citizens would have to accept cutbacks in important government programmes.”

As we grapple with this, Zanu PF threw the cat among the pigeons when on Friday its MPs refused to participate in the Public Accounts Parliamentary Committee (PAC) enquiry into Sakunda Holdings. It may look like a stupid retaliatory move to the MDC MPs’ snubbing of President Emmerson Mnangagwa’s presence every time he steps into Parliament, but there seems to be some method and strategy in the madness.

It is a public secret that Kudakwashe Tagwirei, the owner of Sakunda, is a Zanu PF benefactor. Not only has he pumped money into the party during the 2018 election, but was also rewarded by a seat at the high table as one of Mnangagwa’s chief advisers.

Making Tagwirei speak under oath is akin to having Mnangagwa himself in the dock. My hunch, without evidence, is that the party mandarins whispered the instruction: Zanu PF MPs must not participate in the public lynching of Mnangagwa’s associate, use every trick in the book to make sure the hearings don’t take place. They won the first round easily and most likely that is the end of investigations into Sakunda’s role in the Command Agriculture programme.

This could be linked to Ncube’s Financial Adjustment Bill that seeks to have Parliament condone the Executive’s unexplained expenditure of US$10,6 billion borrowed between 2015 and 2018. Leaving MDC’s Tendai Biti unrattled was not an option. This was part of the strategy where Zanu PF would circumvent PAC and have the issue dealt within the House where the party has a super-majority. In other words, MDC’s boycott of the sitting would be irrelevant as Zanu PF has four-times the required quorum for the House to sit.

However, it has to be noted here and now that Zanu PF MPs and Ncube are behaving like rogues and getting away with it.MPs in their oath of office as prescribed in the Constitution promise to: “Be faithful to Zimbabwe, that I will uphold the Constitution and all other laws of Zimbabwe, and that I will perform my duties as a Senator/Member of the National Assembly faithfully and to the best of my ability. So help me God.”

Zanu PF MPs through ignorance or impunity by their very action breached one of their core roles in Parliament section 299(1) of the Constitution which reads: “Parliament must monitor and oversee expenditure by the State and all commissions and institutions and agencies of government at every level, including statutory bodies, government-controlled entities, provincial and metropolitan councils and local authorities, in order to ensure that — all revenue is accounted for, all expenditure has been properly incurred; and; any limits and conditions on appropriations have been observed.”

Ncube cannot be absolved of breaching the Constitution as he is ordered by the supreme law to report twice annually to Parliament on debts contracted by the State or guaranteed by it.
Section 300(4) of the Constitution reads: “The minister responsible for finance must — (a) at least twice a year, report to Parliament on the performance of — (i) loans raised by the State; and (ii) loans guaranteed by the State.”

Mthuli since his appointment has avoided doing what the law requires of him and all of a sudden he brings a condonation Bill to the House.How long can good citizens allow Zanu PF to breach the Constitution and get away with it because it has a super majority in the House? Can Zanu PF MPs be men and women of integrity and follow the law and their conscience in their duties at Parliament? This may be asking too much from a party that behaves on herd-mentality.