ZAMBIA-ECONOMY: ANOTHER STATE-RUN COMPANY FALLS
LUSAKA, Dic 14 (IPS) - THE STATE-RUN UNITED BUS COMPANY OF ZAMBIA (UBZ) SEEMED HEADED FOR COLLAPSE WEDNESDAY AS CREDITORS SEIZED ITS ASSETS FOR FAILING TO SETTLE A 4.5 BILLION KWACHA (ABOUT 6.4 MILLION DOLLARS) DEBT.
BAILIFFS SEIZED ABOUT 15 OF THE COMPANY'S BUSES EARLY WEDNESDAY FOLLOWING A SUPREME COURT ORDER THAT EDESA INTERNATIONAL, A LUXEMBOURG-BASED COMPANY, TAKE POSSESSION OF UBZ ASSETS BECAUSE OF ITS FAILURE TO SETTLE THE DEBT -- OUTSTANDING SINCE 1982.
EDESA LAWYER EDWARD SHAMWANA SAID HIS CLIENTS PLANNED TO AUCTION THE ASSETS IF UBZ DID NOT SETTLE THE DEBT BY THE WEEKEND.
"I DO NOT KNOW HOW MANY BUSES UBZ HAS, BUT WE ARE SEIZING THE WHOLE LOT," HE SAID.
GOVERNMENT RECENTLY SAID IT WOULD BAIL OUT THE CASH-STRAPPED COMPANY -- BUT HAS BACKTRACKED IN THE WAKE OF DONOR DISAPPROVAL.
WESTERN DONORS THREATENED ZAMBIA WITH AN AID CUT IF GOVERNMENT CONTINUE TO SUBSIDISE LOSS-MAKING PARASTATALS.
WITHDRAWAL OF GOVERNMENT SUPPORT HAS ALREADY SENT ONE PARASTATAL FIRM, ZAMBIA AIRWAYS, REELING.
UBZ MANAGEMENT WAS THIS WEEK MAKING FRENETIC EFFORTS TO SAVE THE BUS COMPANY FROM THE AIRLINE'S FATE -- COLLAPSE.
MANAGING DIRECTOR ALBERT NG'ANDWE WROTE TO TRANSPORT MINISTER WILLIAM HARRINGTON EARLIER THIS MONTH AND IMPLORED HIM TO USE HIS INFLUENCE TO SAVE THE COMPANY.
FINANCE MINISTER RONALD PENZA, HOWEVER, HAS RULED OUT GOVERNMENT INTERVENTION TO SAVE THE COMPANY.
A THIRD TRANSPORT COMPANY, ZAMBIA RAILWAYS, IS BURDENED WITH SEVERE FINANCIAL PROBLEMS AND SEEMS TO BE CHUGGING TOWARDS COLLAPSE AS WELL.
MANAGEMENT OF THE RAILWAYS HAS ADOPTED A SURVIVAL PLAN IN WHICH SOME 2,000 WORKERS ARE TO BE LAID OFF, AMONG OTHER DRASTIC MEASURES.
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