BY MISHMA CHAKANYUKA

ECOBANK emerged the overall winner at this year’s edition of the Zimbabwe Independent Banks and Banking Survey ceremony which was held in Harare yesterday.

The main aim of the event, organised by Alpha Media Holdings (AMH), is to award banks that have done exceptionally well over a given period. AMH are the publishers of NewsDay, The Standard and Zimbabwe Independent and also runs an online radio station HSTv.

POSB emerged as the first runner-up, while NMB was the second runner-up.

The event came at a time banks are reeling from excess constraints which include liquidity challenges, shortage of foreign currency, slow foreign direct investment inflows, high interest rate rates, adverse economic evolution and a suppressed performance of banks’ loan portfolios.

This year’s survey is themed Return of the Zimdollar Transition to Normalcy? It was sponsored by First Capital Bank.

The survey revealed that the banks under review performed well under the prevailing economic conditions, with most of them performing positively.

The awards for the 2019 half year were based on the findings by an independent research house, Equity Axis.

Overally, all the banks registered huge growth in their balance sheets due to property revaluation processes and exchange gains, while income performance for the banks was also good.

Stanbic had the biggest market share by balance sheet size which stood at $3,1 million followed by CBZ at $3,09 million and CABS at $2,1 million.

The survey showed that banks were increasing their loaning platforms and it also looked at banks ratios and earnings.

This year the survey incorporated some awards that are in line with the changing times.

Below are the citations by Equity Axis for the awards:

Overall winner — Ecobank

Barely nine years ago, this bank was at the brink of collapse before a reputable international bank came in to breathe a new lease of life into it. Eight-and-a-half years later, after following a restructuring exercise, the bank is now one of Zimbabwe’s top performers. It has curved a niche in trade financing leveraging on the parent and taking advantage of dwindling correspondence banking to spur its non-funded business. This bank has recorded superior returns ahead of the market and is on course to complete a two-year run on strong earnings growth.

Second runner-up — NMB Bank

The bank has emerged from a volatile past and it has stood the test of time.

The bank is among the few speeding up innovation in Fintech and its results have been showing. Its latest earnings results show a bank that is already reaping early gains from digitisation through a very low income to OPEX level.

First runner-up — POSB

This bank has shown a consistent growth pattern in earnings over the last four years, defying a past of losses and low capitalisation. At one point it was the only profitable parastatal entity and this was achieved through an internal reformation of the bank.

business reporter

THE battle over a US$400 million deal to recapitalise the National Railways of Zimbabwe (NRZ) could be headed to the courts, further delaying plans to fix the country’s collapsed rail network.

After government said it had cancelled the contract with the Diaspora Infrastructure Development Group (DIDG), claiming the consortium had failed to show it had the financial backing to complete the project, DIDG says it “strictly reserves its rights” and describes the cancellation as one driven by “malice”.

According to a statement released Tuesday via Information secretary Ndavaningi Mangwana, government rejected the DIDG because it had shown funds sourced internationally, but excluding South Africa rail company Transnet, whose participation had been a factor in the consortium winning the tender. The tender would now be re-issued to other potential partners, government announced.

“The exclusion of Transnet had a legal impact on the tender, which had been awarded to them as a consortium. In light of the foregoing, government took a position to issue a new tender. If any of the former members of the consortium want to compete, they are still eligible to make bids and will be adjudged fairly,” Mangwana said.

But reacting on Wednesday, Donovan Chimhandamba, head of DIDG, hinted that his company could take legal action.

“We have noted the official statement from a few government authorities. We have been dealing with such malice for the last 18 months and they had managed to hide behind various issues. Last week it was about funding, now it’s about Transnet. None of these parties has communicated anything to us, which we find disturbing. However, we remain resolute to our cause and strictly reserve our rights,” Chimhandamba said.

In 2018, as part of a temporary agreement, DIDG delivered 13 locomotives, 200 wagons and six passenger coaches on a lease arrangement to the NRZ. The delivery was touted as one of the early successes of President Emmerson Mnangagwa’s efforts to attract investment and repair the country’s decayed infrastructure. However, with the deal now in trouble, questions will emerge about how the deal went wrong and what government plans to do next to revive the NRZ.

At its peak, NRZ moved 18 million tonnes of freight per year, according to data from the Infrastructure Development Bank of Zimbabwe (IDBZ), which has been involved in efforts to refurbish the national railway system. In the first half of 2019, according to an NRZ report, the company moved just 1,3 million tonnes of freight, 8,5% down on the same period last year.

The US$400 million deal was meant to cover only the first phase of NRZ’s restoration. To get back on track, NRZ needs a total of US$2 billion in investment, according to an IDBZ assessment report. The needed refurbishment comprises rehabilitation of the railway line network, construction of new railway lines, replacement of signalling equipment, new rolling stock — the locomotives, coaches and wagons — plus repairs to bridges, buildings and other supporting infrastructure.
— newZWire

BY ALLIEWAY NYONI

A FRESH human-wildlife conflict is looming in Chivi North and Zvishavane following reports by village heads that a parade of four elephants was seen at Takavarasha village before two crossed Runde River to Mazvihwa.

Rangers from the Zimbabwe Parks and Wildlife Management Authority (ZimParks) from Mushandike confirmed the development and advised the public to notify the police or relevant authorities if they come across the jumbos.

“Tracking ZimParks rangers have picked spoor of four jumbos at Murowa-Buchwa area in Zvishavane and another spoor has been discovered at Chitowa in Chivi North, with prints indicating that other two jumbos are heading towards Shurugwi area,” said one of the ZimParks rangers.

“It is not known which direction the other two took in Mazvihwa area upon separating from others,” said Zvishavane-Runde Member of Parliament Cuthbert Mpame, who was assisting rangers in search of the dangerous animals.

ZimParks Ngezi cluster manager Trumber Jura advised the public to spread information and avoid a tourist approach in trying to view the animals.

“Let’s keep our people informed about the presence of these straying elephants to save life. Elephants can cover very long distances in a short space of time. If encountered they can pound their target to death.

“Imagine the little ones, especially those unsuspecting schoolchildren, who are likely to take a touristic approach seeing the jumbos as big toys and tamper with them, therefore, inviting an obvious horrific death,” he said.

Jura said his department was working tirelessly to apprehend the jumbos and place them into safety.

Chief Madyengove in Chivi said the animals were suspected to have moved from conservatives in Chikombedzi and were travelling upstream along the Runde River and were first spotat Takavarasha.

BY STEPHEN CHADENGA

GWERU mayor, Josiah Makombe on Wednesday said the local authority would soon identify land for the relocation of the Gweru Sports Club and other recreational facilities to allow for the expansion of the Midlands city.

Stakeholders have, however, castigated council for trying to sell land around the sports club to private developers as part of efforts to expand the central business district, (CBD), saying such a move would deprive the city of recreational facilities.

“As city fathers we have resolved that we need to identify alternative land to relocate the recreational facilities before they are sold to private developers,” Makombe said.

“We take cognisance of the need to ensure that recreational facilities are available for our residents, hence we are going to identify suitable land for the relocation of existing facilities before we repossess that land for the city’s expansion drive.”

Early this year, Gweru Residents Forum director, Charles Mazorodze urged council to “rescind the proposed sale of Gweru Sports Club in the public interest and look for alternative space for the so-called investor”.

Last year, council chamber secretary Vakai Chikwekwe indicated that the municipality would not renew lease agreements on premises located behind the Government Complex to pave way for the establishment of an industrial park that will extend to Fairmile Motel, along Bulawayo Road.

Chikwekwe said council had given the two institutions until January 31 this year to wind up operations.

The proposed disposal of the sports facility has drawn widespread condemnation from the Sports and Recreational Commission, among other stakeholders.

BY NQOBANI NDLOVU

EGODINI Mall developer Terracotta (Pvt) Limited has reportedly been forced to change or amend some structural designs of the mall to cut costs owing to the punishing hyper-inflationary environment.

A progress report to the Bulawayo City Council (BCC) town, lands and planning committee by Terracota reveals that the company has been severely affected by a number of challenges such as the increase in interest rates, inflation and currency changes resulting in it re-designing some parts of the project to cut costs.

“Notwithstanding the challenging environment, works on site have been progressing at an acceptable rate. Due to the prevailing economic situation, the developer has amended certain design elements to mitigate against higher costs that can’t be passed onto tenants,” Terracotta’s report read.

“The sudden introduction of the Zimbabwe dollar in June 2019 as the sole legal tender meant that all arrangements (e.g, bill of quantity, construction contracts, procurement contracts, lease contracts) had to be revisited to enable continuation of planned development activities.

“With inflation last reported as being more than 150%, the project has experienced challenges with suppliers and sub-contractors who are unwilling to price for periods longer than seven to 14 days. This has introduced significant challenges in terms of procurement and budgeting. Under such circumstances, it would not be unreasonable to suspend construction works.”

The project, valued at $60 million, is on a build, operate and transfer basis and will come at no cost to council, reports have said.

The local authority will ultimately own it once Terracotta has recouped its investment.

“As with any capital project, debt funding is a critical component to fund the project to final completion. When civil works commenced, interest rates were between 10% and 12%.

However, these were suddenly increased to as high as 50% as part of the ongoing fiscal reforms.

“This has expectedly had an adverse effect on the phase 1 project programme to completion,” the report read.

Construction of the mall by the South African engineering firm took off last year after several false starts spanning over a period of five years.

BY NQOBANI NDLOVU

THE Bulawayo City Council (BCC) says it has started repossessing several properties, mostly residential, deemed to have been abandoned after having gone for five years without any bill payments.

Town clerk Christopher Dube told Southern Eye that the properties would be sold after a month unless their owners show up and settle all outstanding payments to council.

“We are saying you have not been paying for the past five years, which means you have abandoned the property, or that land. We want the owners to claim those properties and if they don’t in the next 30 days, we will be left with no option but to take those (properties) to the sheriff for sale so that we recover the monies due,” he said.

According to a notice issued by Dube yesterday, hundreds of properties in the city are due for repossession by the local authority after being condemned as abandoned, with the owners nowhere to be found.

In the notice, he said failure to claim the properties would result in council disposing of the said properties in terms of section 5 of the Titles Registration and Derelict Lands Act, Chapter 20:20, which reads: “Whenever there remains due and unpaid for the space of five years any rate or assessment payable to any municipality or other public body upon any immovable property in Zimbabwe and such property is abandoned, deserted and left derelict, and the owner thereof cannot be found, it shall be lawful for the person or body claiming such rate or assessment to apply to the High Court, stating the amount claimed to be due and the grounds for applying for relief under this Act.”

Bulawayo Progressive Residents’ Association coordinator Emmanuel Ndlovu said council is allowed by constitutional provisions to seize derelict properties.

“Yes, I know there are some provisions that allow the council to seize some derelict properties,” he said.

BCC is owed several millions of dollars in unpaid rates by ratepayers with government also being one of the debtors.

A harsh economic climate characterised by skyrocketing prices of basic goods and services has further incapacitated ratepayers’ ability to pay their tariffs, but the local authority has indicated that it has no option, but to increase rates by about 700% in the next four months — if approved by the parent Local Government ministry.

BY NIZBERT MOYO

BULAWAYO transport operators have snubbed the Zimbabwe United Passenger Company (Zupco)’s offer to partner them in the urban mass public transport system, citing unworkable conditions that will throw most of their drivers and conductors out of employment.

Tshova Mubaiwa chairperson Atlas Moyo told Southern Eye yesterday that they failed to reach a consensus with Zupco authorities this week as it was a take it or leave offer.

“The conditions are impracticable and tantamount to give employment to other people from outside Bulawayo as we are supposed to surrender our vehicles to Zupco so that they will look for their own drivers who are likely to come from outside the region,” he said.

“We were told that we will have to surrender our kombis from 4am to 10pm and they become Zupco property during that period and they will only give them back to us in the event of a breakdown.

“We have said no to this. Anyone who will agree to this deal will have to cease to be under our association.”

Moyo said they were invited by Zupco authorities on Tuesday to discuss the matter and after failing to reach an agreement, they advised the owners to meet with the officials.

Transport operator Keeper Ndlovu said they were waiting for the finalisation of the meeting with Zupco Government is reportedly trying to rope in commuter omnibus operators under its comprehensive urban public transport system, a situation that will result in reduced fares for city dwellers.

The Zupco franchise has since been reportedly extended to urban commuter omnibus operators in Harare, where passengers are charged $2 for a local trip that is pegged at $4 by operators who are not on the scheme.

Zupco acting chief executive officer Evaristo Madangwa said he was in a meeting and would call back later yesterday.

Divisional operations manager Tineyi Rwasoka had on Wednesday told the media that they had managed to register 18 omnibuses under the Zupco programme.

He said a trip will cost $2 and indicated that the majority of operators were reluctant to join the scheme citing differences over operating conditions.

“We have since registered 18 kombis and we expect them to start this evening (Wednesday). However, we are struggling to engage more operators, especially those from associations as they are not happy with what we are offering,” Rwasoka was quoted as saying.

Moyo, the Tshova Mubaiwa chairperson, said only three kombis out of over 600 joined the scheme.

He said they were required to surrender their vehicles to Zupco on condition that each kombi will be given two drivers on a shift basis and they would be paid by the owner.

BY VANESSA GONYE

The country’s health system has reached alarming levels as major referral hospitals have reached their lowest rate of service delivery.

During a tour of Harare Central Hospital on Wednesday, NewsDay observed that some wards were closed as there were no patients, with the health institution reportedly only admitting serious and urgent cases.

In one of the wards, only five out of 28 beds were occupied, proving the dire situation at hand.

Health minister Obadiah Moyo blamed the worrisome sight to the ongoing and prolonged strike by doctors who are demanding favourable working conditions, before resuming work.

Speaking during the tour, Moyo pleaded with the striking doctors to return to work while a permanent solution was being mapped out.

“What we are seeing today is the effect of withdrawal of labour by doctors, leaving the hospitals to accommodate critical cases. We are not at the optimum regarding the return of doctors, that’s why I keep calling for their return,” he said.

“It is best to be able to work while we negotiate. We are encouraging our doctors to come to work as we negotiate. We will follow the law to the last detail. We shall make sure that we are guided by the law.”

Added Moyo: “I want to encourage the doctors to return to work. NatPharm keeps replenishing drugs in the hospitals, though we are currently having problems with stocking chronic illness drugs as an order has been placed for the restocking. We want people to return to work and see a fully-stocked work station.”

He urged the doctors to steer clear of political influence as they committed themselves to saving lives.

“We don’t want political influences in our professional sphere. We are here to save lives, not to end up doing things that we were not trained for,” he said.

The Labour Court last week declared the strike by doctors as illegal and ordered the health practitioners to return to work within 48 hours, but the doctors refused to budge, citing incapacitation.

BY NUNURAI JENA

Shielded from prosecution for over 10 years now, former Zanu PF legislator for Magunje, Francis Ndambakuwa (52), is finally going to stand trial for attempting to kill two MDC members ahead of the infamous June 2008 presidential election run-off.

Karoi magistrate Godfrey Mavenge has set November 13 as the trial date for Ndambakuwa and his eight co-accused.

It is the State’s case that sometime in June 2008, Ndambakuwa, Peter Banda, Joel and Cherai Zvikonyaswa, Nickson Dzimiri, Onisimo Bandera, Rungano Pangiwa and Chamasi Mhande went to Shungu and Peterson Kwenda’s house and shot the two using firearms.

The complainants were seriously injured and Peterson’s leg had to be amputated following the shooting.

Ndambakuwa is also facing other charges of malicious damage to property after setting Kwenda’s house on fire on the fateful night.

The nine accused persons were not represented.

Tanyaradzwa Makamanzi prosecuted.

The late former President Robert Mugabe was the sole candidate in the bloody June 2008 run-off after the late MDC leader, Morgan Tsvangirai, who marginally won the first round, withdrew from the race due to alleged State-sponsored violence.

The opposition said over 200 of its members were killed, while thousands others were maimed and raped.