Outcry over ZUPCO payment delays

RUTENDO RORI

Private bus companies contracted under the Zimbabwe United Passenger Company (ZUPCO) have raised disquiet over payment delays saying the development has crippled their businesses.

Operators told Business Times that ZUPCO was taking about two months to pay the private operators franchised to the parastatal, a situation which can adversely affect the country’s public transport sector.

The Greater Harare Association of Commuter Omnibus Operators secretary general, Ngoni Katsvairo, told Business Times that the payment delays have crippled their businesses.

Consequently, the operators are finding it difficult to service their buses.

“Payments are coming a month sometimes two months late and this compromises safety of passengers because operators run out of (financial) resources to do proper service,” Katsvairo said.

He added: “We have proposed that we get paid on time using revenue that we generate ourselves rather than waiting for government subsidies. 

“The hire fee is also not commensurate with operational costs and we have made representations for their review which are long overdue resulting in operators failing to break even for months now.”

He said ZUPCO should review its hire fees for operators to be profitable.

The upward review of the fees would also help ZUPCO attract   more operators, a situation which will help curb the transport challenges being faced by commuters.

Government opened the ZUPCO franchise to private-to-private operators as part of efforts to address mass transport woes.

However, the government has ordered all private bus operators to be contracted under ZUPCO for them to be allowed to operate in the country. Police have since impounded several omnibuses pirating in defiance of the government’s directive.

Katsvairo said: “Alternatively, private operators associations should be allowed to operate a similar franchise programme controlled by a neutral regulatory body put in place by the government. 

“Government needs to put in place a programme that supports vehicle maintenance and renewal of kombis or buses franchises.

“We are also waiting for a response on the issue of self-funding through payment by self-generated revenue to counter payment delays.”

A commuter omnibus operator who requested anonymity said his buses used to generate US$100 per vehicle per day before joining ZUPCO and was no living from hand to mouth.

“We have tried to engage the government without success. To make matters worse, we have a lot of debts and we need to also pay for places we are renting. The truth is that we have been reduced to beggars.

“We have families to support and many responsibilities but now they can’t do this because they are not getting paid on time.

“Government should act on this because we are now suffering. Our business has been destroyed,” he said.

Efforts to get a comment from ZUPCO CEO Evaristo Mudangwa were futile.

He had not responded to Business Times enquiries by the time of going to print.