By Yeukai Karengezeka Herald Correspondent<\/p>\n\n\n\n
Harare City Council\u2019s subsidiary, Harare Quarry, incurred a loss of $367 000 during the first quarter of the year due to low production caused by maintenance shutdown.
The low production led to low sales of $137 909 against a projected $911 250.
In addition, the amount realised was almost equal to salaries and employees\u2019 welfare costs amounting to $137 367 during the period under review.
According to recent Business Committee minutes, Town Clerk Engineer Hosiah Chisango reported that Harare Quarry was not performing well.
\u201cTown Clerk reported that Harare Quarry (Pvt) Ltd encountered a loss of RTGS$ 367, 397.81 for the first quarter,\u201d reads the minutes. \u201cThe loss was attributable to reduced production due to the annual maintenance shutdown, resulting in the first quarter production focusing on clearing 2018 backlog.\u201d
Eng Chisango said a loan of $4,5 million they got failed to meet the costs, as it was eroded by inflation.
\u201cHe also reported on the procurement of capital equipment from the $4,5 million loan that had been facilitated by the shareholder,\u201d reads the minutes.
\u201cRegrettably, the loan had lost value due to delays in expending the loan, hence the amount could not cover the cost of procurement of asphalt and crusher plants.\u201d
This resulted in Harare Quarry entering into strategic partnerships with Voyager (Pvt) Ltd and Instant Tar (Pvt) Ltd for the crusher and bitumen or asphalt plants.
Eng Chisango raised concern over the company\u2019s performance, which regarded the council as its biggest customer.
\u201cHe reported that the main customer for the company was the City of Harare and this position was not in sync with the objective of commercialisation,\u201d reads the minutes.
\u201cThe commercialisation objective was not to only efficiently supply council with its needs, but to also enter into the economic mainstream with a view to increase revenue generation.
\u201cThe reliance on the City of Harare had crippled the entity\u2019s operations due to late . . . payments, hence the company had resorted to using capital expenditure funds for recurrent expenses.\u201d
Eng Chisango\u2019s office was working on a quick resolution to the late payments dilemma.
He reported on the need for the company to improve its turnover to meet all expenditure obligations.<\/p>\n","protected":false},"excerpt":{"rendered":"
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