PRESS RELEASE

Date:               19 October 2011

BPRA calls for transparency in handling of DIMAF

Bulawayo Progressive Residents Associations (BPRA) is calling for transparency in the administration of the US$ 40 million that was availed by treasury for the revival of industry in Bulawayo under the Distressed and Marginalised Areas Fund (DIMAF). While welcoming the fund as a step in the right direction with regards to resuscitating industry in Bulawayo, BPRA believes measures should be put in place to ensure that the funds reach the intended beneficiaries, ailing businesses in the city. In line with this, the association proposes that there should be thorough vetting and verification in the handling of the funds to ensure that business operators from outside Bulawayo do not get the funds at the expense of local operators.

Firstly, the vetting and verification procedure should look into the history of the companies seeking funds to ensure that they are companies that have always operated in Bulawayo. Consonant with this, the shareholding/ownership structures of the companies should be tracked to ensure that there have been no suspicious ownership changes or takeovers in recent months as people from outside Bulawayo seek to get their hands on the funds through acquiring Bulawayo based firms.

Secondly, measures should be put in place, for instance through binding contracts, to ensure that companies that benefit from DIMAF do not relocate to areas outside Bulawayo after accessing the funds. The contracts could for example tie companies to Bulawayo for ten years.

Importantly, BPRA proposes that the funds should only be awarded to companies on the basis of clear and concise business proposals showing how the company will utilise the money to eventually make a profit. Companies with no clear business strategy should not be given the funds. This would ensure that the US$40 million, although insufficient on its own to revive Bulawayo’s waning industry, is put to optimum use.

In addition, BPRA proposes that the government should ensure that the companies that benefit from DIMAF employ Bulawayo residents as opposed to bringing workers from outside the city. This is very important as thousands of Bulawayo residents have been rendered jobless by the de-industrialisation of Bulawayo.

Lastly, for the purposes of transparency, BPRA believes that a list of all the beneficiaries of DIMAF should be made public. This is the main way that can be used to ensure that the funds are received by the intended beneficiaries. Should any undeserving company or individual receive the funds, publicising a list would serve the function of naming and shaming corrupt stakeholders in the administration of the funds.