NRZ facing collapse(08-02-07)

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The Zimbabwean is in possession of financial statements from the national railway operator revealing that it is carrying a debt in excess of Z$300 billion, which is at risk of being cancelled by both local and regional partners.
NRZ had, as of the end of last year, “tried in vain to implement recapitalisation and viability enhancement programmes without success making it difficult to clear the budget deficit of about $300 billion” according to a document obtained from internal sources.
The Zanu (PF) administration’s economic policies have been cited as the causes of NRZ’s problems, which are highlighted as “operating at huge loses as a result of charging below-market fares and fees for any other services whilst at the same time carrying a cumbersome salary and wages obligation”.
A senior source in the NRZ finance department said the debt situation has been gradually worsening over the past couple of years because the government increasingly failed to inject funds into the institution as it used to do in the past.
He added that some of the creditors from the private sector were up in arms with NRZ over the continuously ballooning debts. – Own correspondent