Staff Reporter
THE troubled National Oil Company of Zimbabwe (NOCZIM) will soon unbundle to create strategic business units (SBUs) that will undertake specific functions in what could eventually lead to the disposal of some of the non-core operations to private buyers. NOCZIM has been faced with a myriad of problems since 2002 when the government de-regularised the procurement of petroleum products in a move that saw private players coming on board.The parastatal then embarked on a programme to diversify its operations, venturing into other projects outside its core business such as horticulture and the controversial jatropha plantations.
Most of these projects have proved to be non-profitable prompting the government this year to order NOCZIM to stick to its main objective of fuel procurement.
The Financial Gazette can now reveal that the fuel State procurer is finalising a model to use in creating the SBUs with management meeting over the past few weeks to map the way forward.
The move is, however, expected to create more executive positions at the ailing company, which three months ago was directed by government to trim down its senior staff in order to cut down on costs.
One of the separate companies would be tasked to run NOCZIM depots countrywide, which include Magunje, Beitbridge and Mabvuku while the other would run all the parastatal’s service stations.
“The plan that the management has come up with for NOCZIM could be disastrous because we are likely to see a company running the Feruka pipeline, a company managing depots and another managing service stations,” said a source at the parastatal.
“What it will entail is that all these companies will have their own managerial staff and it could also be a way of creating positions for senior managers who were directed by the government to leave the company because it is currently top-heavy.
“This plan will not work. A good example is that of ZESA. Operations would be compromised because there will be a lot of staff and resources needed from a company that is already struggling to keep its daily operations afloat.”
Energy and Power Develo-pment Deputy Minister, Hubert Nyanhongo, could not provide finer details of the unbundling as he wanted to consult the parastatal first
“I cannot comment at the moment. I want to first get the position of NOCZIM to find out where they are and their latest position,” he said.
If the plan sails through, NOCZIM will join the list of other State companies like ZESA Holdings, which undertook a similar exercise in 2003.
The companies under the ZESA Holdings flagship are Zimbabwe Power Company, Zimbabwe Electricity Transmis-sion and Distribution Comp-any, ZESA Enterprises, Rural Electrification Agency and PowerTel.
These companies have had their fair share of problems and are struggling to provide quality services.
Comments (0)
Show/Hide commentsWrite comment
Show/Hide comment form