The Zimbabwe Congress of Trade Unions (ZCTU) has urged government to come up with a financial scheme to support struggling companies that have been placed under judicial management in Bulawayo.
Speaking to Radio Dialogue, ZCTU secretary general Japhet Moyo said although corporate governance remains a challenge within local business, government should create a separate funding scheme to assist these companies for the purposes of creating employment.
“In this country it is not a criminal offence to steal from yourself, company owners are siphoning money from their own companies to fund other business ventures, while we appreciate that government should take steps to criminalise mismanagement, corporate governance should be adhered to,” Moyo said.
“If government believes that companies that are under judicial management have the capacity to create and save jobs then they should put money. The government could resuscitate DIMAF to include companies under judicial management, it should go beyond what they had envisaged or come up with a totally separate fund to fund companies that are ailing for various reasons. ”
Moyo said they were advised that companies under judicial management are not beneficiaries of the Distressed and Marginalised Areas Fund (DIMAF) as they stand accused of corporate mismanagement.
DIMAF is a $40million fund set up by government to assist financially ailing companies. Moyo said the companies that are believed to have benefited are companies that are in a position to finance their operations.