Zupco Operations Halted Amid Fuel Crisis and Allegations of Mismanagement

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Zimbabwe Passenger Company (Zupco) has been forced to suspend its operations due to a critical fuel shortage, according to information obtained by NewsDay. The suspension has sparked concerns about managerial incompetence and political interference within the company.

Sources from within Zupco report that many employees, including drivers, have been left with nothing to do and are merely signing in on the logbook each day. One insider commented, “Our fuel depots are dry, and there is no fuel for the buses. Our routes have been suspended due to the fuel crisis.”

Despite the country having ample fuel supplies, Zupco’s main depots have been without fuel for three weeks. A leaked WhatsApp message revealed that regional managers are struggling to secure fuel allocations. The message disclosed that a request for fuel from the financial director was denied due to a lack of cash, which had been used to purchase fuel for private hires. Efforts to obtain a credit facility were also rejected due to outstanding credits.

The message further revealed that Zupco has been blacklisted from purchasing fuel from private dealers, and company policy prohibits divisional-level fuel purchases or deferred payments. Requests for fuel sent to the head office have not yielded results.

Investigations indicate that senior management mismanagement has plunged the company into a financial crisis. Allegations have surfaced that top officials diverted funds during Zanu PF campaign rallies ahead of the 2023 general elections. Insiders claim that senior managers attended these rallies, each receiving US$300 in allowances.

It is alleged that Zanu PF paid for fuel at PetroTrade service stations for hired buses, but excess fuel was diverted for personal use by managers, contributing to the company’s operational challenges. Workers also reported that depots like Belvedere, under the Northern Harare Division, received 2,000 liters of fuel that lasted less than three days, leaving buses idle while private companies took over some routes.

Zupco is now under the Mutapa Investment Fund. Some insiders attribute the company’s losses to corruption, nepotism, and unprofessional conduct among senior officials. John Mangudya, the Mutapa Investment Fund CEO, directed inquiries to the Zupco board, emphasizing the importance of good corporate governance.

Zupco board chairperson Jemister Chininga and Acting CEO Linda Samunderu did not respond to requests for comment. Patrick Chinamasa, former Zanu PF secretary for finance, refused to disclose details about the party’s payments for bus hires, stating he does not discuss business relationships with outsiders.

Earlier this year, Zupco terminated contracts with private bus companies operating urban routes. The government had reintroduced Zupco in January 2019 to alleviate high transport costs for commuters, before the COVID-19 pandemic struck. Zupco buses have been used to transport Zanu PF supporters to events, leaving regular commuters stranded.

During the tenure of the late Robert Mugabe, Zupco buses often featured posters of former First Lady Grace Mugabe, symbolizing the political influence on the transport operator.

-NewsDay