ZANU PF is broke and owes creditors over $11 million as debts and other financial woes continue to mount for the ruling party, it has emerged.
According to the Central Committee Report tabled before the 6th Zanu PF National People’s Congress which ends today, the party’s liabilities amounted to
$11 472 810 and included bank loans, accruals from telephone usage and outstanding creditors.
The report covers the period from January 1 2014 to December 2014 and gives a graphical summary of the income and expenditure incurred by the party.
“The party’s liquidity remains vulnerable as it is over-burdened by overdrafts and choking liabilities. The department (finance) is optimistic that more innovative ways will be found to strengthen the party’s economic soundness,” the report reads.
“The department of finance is working tirelessly to liquidate the bank’s overdraft and loan.”
Zanu PF said during the reporting period, the deficit trend whereby expenditure surpasses income worsened in part due to the party having very limited sources of revenue, against a background of the deterring high cost of money.
“The party’s obligations remained congested, especially in view of the drive to rejuvenate the party, mobilise and organise membership and electorate for Zanu PF victory, in the harmonised elections,” the report reads.
Zanu PF also said donations had diminished due to the liquidity strain being experienced by companies which resulted in the party relying on a bank draft.
It said the department began 2014 on a backdrop of very high expectation as far as mobilisation of resources was concerned because of the level of financial requirements, especially to fund the women and youth conferences and the main national people’s congress.
According to a graph in the report, the total income curve was far below that of the total expenditure curve.
The report said the party’s working capital requirements continued to shock the limited income which in turn weighed in on the obligation of servicing bank facilities and payments to creditors.
“The party’s credit worthiness has also sagged as service providers demand cash upfront before providing goods and services,” the report read.
Notable debts which the party has were that of a telephone bill.
“The telephone and Internet usage for this financial year totalled $180 793 and together with accruals for previous years, the bill now stands at $429 999,” the report further read.
“It is urgently necessary to introduce control measures so as to avoid unnecessary telephone and Internet usage.”
The party said it was being charged $262 411 as interest on bank loans, while the bank overdraft of $6 000 000 had attracted an interest charge of $480 306,07 in 2014.
In the report, Zanu PF said the main sources of income for the year 2014 were the membership and subscription fees which amounted to $382 631, the government grant which was $571 000, donations amounting to $1 525 150, proceeds from party related companies $181 495 and fund-raising activities $1 294 902 – Newsday.