Mystery over Air Zim aircraft ownership   

BY KUDAKWASHE CHIBVURI

Struggling national airliner, Air Zimbabwe, is under Parliament scrutiny over alleged corruption, deficiencies including unrecorded aircraft and failure to compute tax liabilities in what lawmakers describe as a matter needing immediate attention amid fears the entity could lose some of its aircraft including a grounded airbus in South Africa.

According to the Parliament’s Public Accounts Committee (PAC) report on Air Zimbabwe’s 2020 audited accounts, there are significant deficiencies exposed including use of aircraft not recognised in its financial statements.

According to a report from PAC on Air Zimbabwe’s 2020 Audited Accounts presented to the National Assembly by Chimanimani West Member of Parliament Wilson Maposa, the entity has unrecorded aircraft not recorded as assets in its financial statements, a position that raises questions.

“The Committee also noted the use of several aircraft by the airline which were not recognised as assets in its financial statements. There was no information on whether Air Zimbabwe is the rightful owner of the aircraft,” Maposa said.

Six aircrafts were mentioned with Air Zimbabwe officials saying they have since written to the government to obtain the necessary documentation to facilitate formal recognition of these assets in its books.

“The A320 Z-WPM ownership ambiguity creates potential liability exposure under the Chicago Convention,” Maposa said in reference to a matter on one of the aircraft.

The committee recommended that Air Zimbabwe should register all aircraft under the government of Zimbabwe by August this year.

“The audit noted that since January 19, 2014 when the Z-WPM A320 aircraft was grounded in South Africa, a debt pertaining to parking fees had not been accrued. Servicing of the debt was also not being done for a reason that invoices were not being received from South African Airways Technical.”

The committee was, however, told that the airline wrote to South African Airways Technical (SAAT) to confirm their position and received confirmation that no parking fees were due.

“Instead, the aircraft was only quoted for the outstanding maintenance work that would be required when the aircraft is scheduled to fly. It was further indicated that, to prevent similar oversights in the future, the airline had established regular communication channels with SAAT to obtain the invoices for any chargeable tasks on the grounded aircraft,” Maposa said.

The committee, however, expressed fears there could be consequences.

“Continued storage exposes the Aircraft to potential seizure under South Africa’s Airport By-Laws,” Maposa reported.

On Tax computations, the committee noted that they were not done.

“Audit noted that during the year ended December 31, 2019, Air Zimbabwe did not do any tax computation for both income tax and deferred tax. Quarterly returns were not being done. The tax

liability and deferred tax could not be ascertained,” Maposa said.

“Air Zimbabwe should submit all outstanding financial statements to the Auditor General by 31 August 2026. The Government of Zimbabwe should ensure that submission of financial statements in time is part of the performance contracts for Accounting Officers by 31 August 2026.,” the committee recommended.

Dzivarasekwa MP, Edwin Mushoriwa, said the report by the Public Accounts Committee on Air Zimbabwe show all is not well.

” The Auditor-General’s report dates back to 2019, leaving a gap for 2021 and 2022 with no updates provided. The Auditor-General has raised serious allegations of corruption, indicating that even the financial accounts presented are not accurate,” Mushoriwa said.

“This issue extends beyond financial discrepancies; there is lack of proper asset management and recording. This includes not only vehicles but also aircrafts which are critical assets for Air Zimbabwe,” he said.

He added: “When a company operates without clear visibility of its assets, it raises serious concerns. The Auditor-General has indicated that Air Zimbabwe is utilising approximately five planes that are not reflected in their official records. There are claims that these aircrafts are sourced from the government or the Air Force. However, there is a lack of transparency regarding their origins.”

“These are merely assertions without substantiation. Furthermore, Air Zimbabwe has several aircrafts that remain parked at OR Tambo Airport in South Africa, where they are inactive and overgrown with grass due to a lack of operational activity.”

He said significant efforts are required to address these critical issues and expressed hope that since the entity was placed under the Mutapa Investment Fund, this would lead to positive developments.

It emerged that the struggling entity is also short staffed raising capacity concerns.

“However, a major concern raised by the Public Accounts Committee is how progress can be made without adequate personnel dedicated to improving Air Zimbabwe. Currently, there is a lack of effective oversight as there are no auditors in place to ensure that financial resources are being managed properly. At present, only three individuals are employed at Air Zimbabwe and they are not actively contributing to the necessary improvements.”

Mushoriwa said the national airliner is now a pale shadow of its former self.

“Currently, if you visit Robert Mugabe International Airport, it is disheartening to note the absence of Air Zimbabwe flights,” he said.

“Instead, you will see numerous planes from other airlines such as South African Airway, and you can spend the entire day waiting to see an Air Zimbabwe flight but there will be nothing. This situation is truly painful.”