GMB Collapses, Owes $17 MIllion Salaries
30 June 2015
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Yesterday Parliament heard that Grain Marketing Board owes its workers $17 million in unpaid salaries as it is struggling to operate because the Government has delayed to release funds.
GMB deputy general manager Mr Joe Muzurura speaking before the Public Accounts committee,  said the parastatal was also receiving an average of 15 to 20 summons each day from creditors.
He said GMB last paid its employees full salaries nine months ago,and now the parastatal had resorted to paying a flat salary of $300 to all its 1 984 workers.
“Government owes GMB $26 million for the grain delivered to the parastatal depots of which $9 million is for the grain received this season. GMB last received support from Government five months ago.
We have failed to pay our employees their salaries as we do not have money,” said Muzurura.
He went on to say between 2009 and 2014, Government owed GMB $44 million but Treasury paid $39 million in offsets.
“Treasury would settle our bills such as water, electricity and settle our debts instead of giving us cash. This is good but we do not purchase other resources using offsets.
It would make sense if GMB gets its cash and support its activities,” he said.
Besides maintaining the strategic grain reserve, GMB is involved in milling, packaging of rice, sugar beans and salt.
The parastatal has also started producing stockfeeds at the Norton plant but these have not been viable.
GMB acting general manager, Mr Lawarence Jasi, said the company had also gone into a partnership with a Chinese company to manufacture propylene bags.
“We would want to generate about $4,5 million a month but now we are getting $1,5 million.
GMB has been facing financial challenges with some experts encouraging Government to find strategic partners to assist with the resuscitation of the institution. – State Media

3 Replies to “GMB Collapses, Owes $17 MIllion Salaries”

  1. The root causes of the collapse will be decades of mismanagement and corruption – the sanctions imposed by the West have nothing to do with it!

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