By Correspondent
Mutare City Council’s decision to revive a perennially loss making and controversial business entity could be another new disaster.
The local authority intends to bottle and sell water under its Pungwe Breweries subsidiary.
The revelations were made by Town Clerk Blessing Chafesuka during the city’s review of the third quarter.
However the revival of Pungwe Breweries, wholly owned by Mutare Council, is cause for concern after previous shenanigans.
Loss Making Entity
In 2012 officials proposed that the entity be leased out as it was failing to break even.
The unit had become a perennial loss maker and a major drain on its coffers.
Efforts to resuscitate it through direct cash injections failed to revive its fortunes.
The following year, the National Social Security Authority (NSSA) garnished Council’s account to recover $97 500 owed to it by Pungwe.
Council tried inviting tenders for a private partnership, but the offer attracted no takers.
Govt Orders Shutdown
In 2016 Government directed Mutare to shut down the loss-making venture.
It said was bleeding the local authority millions of dollars in salaries.
In approving the municipality’s 2016 budget, the Ministry of Local Government, said a loss making income generating venture like Pungwe Breweries was an oxymoron which must be shut down.
“Pungwe Breweries should be closed down so that the $22 000 monthly wage bill ceases.
“Residents cannot be required to subsidise unproductive workers,” wrote the ministry.
Corruption Hub
In 2020, then Auditor-General Mildred Chiri lamented lack of transparency and accountability in Mutare’s business deals.
Chiri revealed that thousands had been lost due to mismanagement of funds, assets and shady deals.
She said most governance issues noted in different local authorities, including Mutare, emanated from the absence of key policies.
“Despite owning 100% shares of Pungwe Breweries, Mutare City has not been preparing consolidated financial statements,” Chiri said.
The entity was even the centre of power struggles as involved politicians were accused of fleecing it.
Power Struggles
In 2021 ZANU PF supporters disrupted a Pungwe Breweries meeting meant to choose replacements for councillors recalled by MDC-T.
The meeting was premised at replacing two former MDC Alliance councillors, Edson Kalulu and Kudakwashe Chisango on the company board.
Strikes
In 2022 close to a 100 contract workers at Pungwe Breweries downed their tools protesting over non-payment of salaries for eight months.
The disgruntled employees locked everyone, including the management, inside the brewery’s premises in the Nyakamete Industrial Area.
However, after years of failing to make the entity viable, Mutare has come up with another idea.
Chafesuka says the idea to set up a water bottling service will be viable.
“This is another area which we will embark on.
“This will be done by Pungwe Breweries so that we have our own bottled water.
“Some of the equipment is already at the place,” he said.
However, after years of failing to turn around the fortunes of Pungwe, the chances of the water bottling business thriving are slim.
