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Thursday, 31 October 2024

Cigarette stub started fire that destroyed decommissioned coaches worth US$40,000 – NRZ

THE National Railways of Zimbabwe (NRZ) has established that a cigarette stub caused an inferno that destroyed decommissioned coaches at its main station in Bulawayo in September.

40 coaches were destroyed in the blaze that engulfed the NRZ workshop with initial reports by the parastatal suggesting foul play.

This incident followed another fire that involved coaches in Harare, raising suspicions of arson attacks.

Appearing before the Parliamentary Committee on Public Accounts, NRZ general manager, Respina Zinyanduko said internal investigations point to a cigarette stub having been the cause of the fire.

“The initial report that I got from loss control as well as the report I got from a commission of inquiry that we set, it constituted of different departments of NRZ has indicated that it could be a fire was as a result of some employees, because we do not allow some people to smoke at work, some employees could have taken shelter in those coaches trying to hide and smoking a bit.

“One of them might have left a stub that was still burning and there was the wind; it then resulted in the spread of fire,” said Zinyanduko.

The decommissioned coaches had exceeded their operational life span and the NRZ was awaiting their disposal as scrap.

Zinyanduko told the Committee that NRZ lost US$40 000 in the value of the coaches as a result of the fire.

“The value that was lost was minimal because we had taken the seats from these coaches and they were fitted to those which were operational. These were more like shells that were parked with the intention to refurbish them in the future or disposing of them.

“The value that was there was on the scrap value of the assets, I examined the coaches one by one myself and they are still in a condition in which we can dispose of them as scrap metal. Those coaches in our books were carrying a value of about US$1,000 each because they were just shells,” said Zinyambuko.

Source: Cigarette stub started fire that destroyed decommissioned coaches worth US$40,000  – NRZ (30/10/24)

Wednesday, 30 October 2024

After incurring losses for years, NRZ in process of cancelling “toxic” 90s joint venture with Landela Safaris

 NATIONAL Railways of Zimbabwe (NRZ) is in the process of terminating a joint venture agreement with Landela Safaris after the parastatal suffered losses during the deal.

NRZ entered into a joint venture with Landela Safaris to lease its prime land in Victoria Falls in 1998.

According to the agreement, Landela Safaris would construct two houses and lodges, along with a commercial centre being developed on the land.

NRZ general manager, Respina Zinyambuko told the Public Accounts Committee Monday that the parastatal may have been prejudiced in the joint venture.

“What we have done is we wanted them to be compelled to submit the financials then we compare what we have so that at least we can see the potential prejudice. In that JV NRZ has 26 percent so it is a minority shareholder,” said Zinyambuko.

Zinyambuko told the Committee that NRZ are in the process of terminating the agreement which is currently under arbitration.

“We have realized that JVs will be very difficult for us while concentrating on our operations as NRZ people can overstate the operational costs and everything and you end up with nothing.

“So we have revisited all these JVs and some we have terminated and opted for outright lease. This one we are terminating the joint venture because we have realized we are not getting anything. Instead, we are opting for this other arrangement,” said Zinyambuko.

The national railway operator has been reportedly losing funds after years of mismanagement of its assets portfolio.

The management and board are making efforts to plug in the losses which will see the parastatal gaining profits from its ventures.

NRZ board chairperson Mike Madiro told the PAC committee that the Landela Safari deal has become “toxic”.

“What we have learnt is there were serious governance issues with this joint venture to the extent that there were no board meetings.

“The relationship between NRZ and the other parties was ‘toxic’ to the extent that when the management was trying to convene the board the other parties were refusing,” said Madiro.

Source: After incurring losses for years, NRZ in process of cancelling “toxic” 90s joint venture with Landela Safaris (29/10/24)