via ‘Empowerment board broke’ – DailyNews Live by Kudzai Chawafambira and Mugove Tafirenyika 7 FEBRUARY 2014
The National Indigenisation and Economic Empowerment Board (Nieeb) — a government body created to implement the indigenisation programme — says it is broke and failing to carry out its mandate.
Its chief executive, Wilson Gwatiringa, yesterday told Parliament that they urgently need capital.
Apart from government support, Nieeb is supposed to get dividends and shares — through its National Indigenisation and Economic Empowerment Fund (Nieef) — from indigenised foreign-owned firms.
However, implementation of the empowerment policy was last year thrown off balance as some foreign companies failed to fully comply while other indigenisation deals were halted amid concerns that there were structuring flaws.
“As we pursued compliance with the law, we encountered a plethora of problems that include a misunderstanding of the programme, resistance by some companies, intransigence, avoidance and politicisation of the economic programme,” Gwatiringa told Parliament’s Indigenisation and Economic Empowerment committee yesterday.
He said at present, there was no legislation is allowing them to collect levies while Nieef had not been capitalised, among other financial constraints.
“Though we made proposals and submissions on the levies, we still do not have the statutory instrument to collect them,” Gwatiringa said, adding that “we therefore, have been dependent on fiscal budgetary allocations since inception.”
He said the board has been grossly underfunded, receiving a $2,6 million allocation from Treasury out of a requested $10, 25 million in the 2014 National budget.
Gwatiringa said the situation was compounded by the fact that despite the meagre allocation, disbursement of the funds was in dribs and drabs.
“Previous experience has taught us that we do not normally get what we are allocated when it comes to disbursements as we are usually given 20 percent of the allocation.”
“If that trend continues, it means we are likely to get under $1 million,” he said.
He noted that it was unfortunate that Nieef is yet to be capitalised by Treasury and has no significant assets.
Gwatiringa highlighted that the board’s projects division — whose mandate is to provide financial assistance for business start-ups, rehabilitation and expansion as well as management buy outs — has been adversely affected by the perennial lack of financial resources.
“However, we continue to receive loan applications. On file we have applications with a total value of $58,4 million from different parts of the country,” he said.
Responding to enquiries by Chief Senators Nyamukoho and Nembire of Mashonaland East and Mashonaland West on why their areas had not benefited from the empowerment programme, Gwatiringa said Community Share Ownership Trusts were only for communities that had mineral resources and mining activities taking place.
COMMENTS
Why fund a deceitful bunch of thieves and crooks that will only empower Zanu mafia
An official board of theft is set up and managed and staffed by known thieves and now all the money is gone and nobody knows what happened to it. A very difficult problem. I would say the tooth fairy took all the money, since these innocent fellows could not have.
Mr Gwatiringa who are not as clever as you think because your mathematics is very bad indeed.You asked for $10.25 millions and you got about $2.6 millions which you proudly say its only 20%,you are wrong because that works out to be slightly above 25% which is better than the education and health budgets allocations.
In the early eighties a similar group like yours was given huge sums of money which were looted with no new companies being created, so you expect the minister to waste more money to your misguided organisation.You are lucky that you got that high percentage because if I were the minister I would have given you only $200 000 for your offices rental and telephone bills.
Do not take us for granted anymore, we know the system now so we will do everything possible to expose you and the rest.
correction-you after Mr Gwatiringa NOT who
After reading your statement again I noticed that you were referring to the $2.6 millions allocated to you,therefore you would actually get about $520 000 ,which in my opinion is still too much for your organisation which has failed in the past to create new jobs.
Truly unbelievable what’s going in zim. Arise Zimbabwe arise and take back our country
There are just too many hopeless parastatals!
they were morally bankrupt before they even started.
sweet dreams comrades sweet dreams