By Correspondent
Formed in 2007, Bulawayo Council’s investment vehicle, City of Kings Business Ventures has failed to declare a profit since 2009.
Thus, it has operated for nearly 16 years with Council getting nothing out of it!
The last Auditor General’s report, released in 2023 pegged the capital investment at nil value.
Some of the business units that fall under CKBV include Mguza and Mazwi nature parks, Mzilikazi Art, Craft and Pottery Centre and Parks Nursery and the Council Caravan Park.
Financial Woes
In 2013 the venture was finding it difficult to run its various units.
A confidential Council report stated that the units had high expenditure and very low income.
The biggest cost driver being salaries and electricity costs.
For some time in 2014 council considered retaining some of these units or privatising them and totally dissolving the CKBV.
The idea was based on a Board verdict of technical insolvency in January 2013 after an arbitration award that ruled in favour of its employees.
The Board reported most income only came from sales at the Caravan and Parks Nursery.
Very little income has been coming from the Nature Parks and Mzilikazi Art, Craft and Pottery Centre.
“This entity did not issue financial statements since 2009.
“Management believed that this capital investment was fully impaired considering its loss making position since 2009 and assigned a nil value to the investment.
A Negative Trajectory
The trajectory of City of Kings Business Ventures has been consistently negative its strange why the entity continues to this day.
In 2021 CKBV wrote to BCC seeking support in the form of horses.
It wanted them for patrols at its Aisleby and Goodhope farms.
The appeal for donations was an exhibition of the dire status of the investment vehicle.
To worsen the situation last year CKBV was dragged to the Labour Court over a wage dispute.
In her recent ruling, Bulawayo Labour Court judge, Mercy Moya-Matshanga ruled in favour of the workers.
“The employees of CKBV are free to negotiate salary increases they deem fit which their own organisation can pay if they are so minded.
The ruling opens another avenue for the financial disembowelment of the Council entity.
Already reeling under acute financial challenges and not making any profit, it’s strange how the vehicle continues to function.
