Government has set aside $54 million for Air Zimbabwe towards retrenchment of its excess labour force, while it is pursuing ways of assuming the airline's debt overhung pegged at over $300 million and US$30 million to local and foreign creditors respectively, legislators have heard.
Transport and Infrastructural Development Permanent Secretary, Engineer Tedious Chinyanga said this on Monday during a virtual meeting with Parliament's portfolio committee on Transport.
"Treasury is currently validating and verifying Air Zimbabwe creditors, however, to avoid further labour dispute issues, Treasury resolved to offer financial support of $54 million towards the retrenchments of excess staff not required for continued operations by the airline," said Eng Chinyanga who was accompanied by Transport and Infrastructural Development Minister Felix Mhona.
Eng Chinyanga said Cabinet had resolved to assume Air Zimbabwe's debt in December last year after Government failed to find a strategic partner.
A team led by Vice President Constantino Chiwenga has since been constituted to negotiate, agree and implement a scheme of restructuring the airline's foreign debt.
On National Railways of Zimbabwe, Eng Chinyanga said Government stood by its decision of cancelling the US$400 million deal between the railway utility and Infrastructure Development Group-Transnet consortium.