FOLLOWING the suspension of three senior executives in 2024, the state-owned National Handling Services (NHS) is undertaking a significant revitalisation. Our deputy news editor Tinashe Kairiza (TK) spoke with NHS board chairperson Godwin Nyengedza (GN) about the company's recapitalisation, its anti-corruption measures, and its growth strategy for the year ahead. Below are excerpts from the interview:
TK: How much is required to revive the NHS and how much has been mobilised so far?
GN: The company requires a total of US$4,5 million for its recapitalisation drive for both the Zimbabwe and Namibia operations. Thus far, the company has mobilised US$1,3 million.
TK: As part of its recapitalisation strategy, the NHS has been engaging with several private players. What has been the outcome of those interactions?
GN: While we cannot comment on specific engagements that the company is currently pursuing for reasons of confidentiality, we are pleased to advise that the company has taken great strides towards recapitalisation using its own funds. All these initiatives were self-funded.
TK: Your board was put in place following the expulsion of various executives implicated in corruption scandals. To what extent is corruption still a challenge to the operations of the company?
GN: For clarity of the record, please note that the former executives were not released over corruption scandals. The suspension and eventual departure of three NHS top executives late last year was necessitated by irregularities, not linked to corrupt activities that required the board to take swift action to protect the company's interests. Furthermore, the current board was not put in place following the departure of the said executives. The current board has been providing policy and strategic leadership of the company for a number of years. Corruption is not a significant challenge to the operations of the NHS. The board and the company take corruption very seriously and have implemented robust measures to prevent and detect corrupt activities, and so far those interventions have served the company well.
TK: As a board, how do you prevent corruption?
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GN: As would be expected of any State-Owned Enterprise (SOE), the company’s employees and the board are subject to checks and balances through various internal and external stakeholder oversight. Though not purely exhaustive, the list includes internal audit control, whistleblowing mechanisms, integrity committees as mandated by the Zimbabwe Anti-Corruption Commission, and board oversight through the board integrity committee and the board’s audit committee. We also provide board quarterly reports to the line ministry and the Corporate Governance Unit in the Office of the President and Cabinet; and hold an annual general meeting, which is attended by many stakeholders and a platform to which the media is always cordially invited. You would also be interested to know that, likewise, the Parliamentary Portfolio Committee on Transport and Infrastructural Development also has its pulse on what goes on within those SOEs that fall under its capable purview, and that includes the NHS. These initiatives demonstrate the NHS's commitment to maintaining a culture of integrity and transparency in its operations.
TK: What changes has your board introduced to restore the image of the NHS as a respectable corporate entity?
GN: Steps are being taken to ensure that NHS resources remain safeguarded. In addition, the company will continue to implement robust control strategies and trust-building initiatives which will restore public confidence in the company. To showcase this, the company has, over the past 10 months, under the acting executives, achieved the following, among others: commissioned the Khami First Class Lounge; commissioned seven pieces of ground support equipment; commissioned a CSR Project at Majiji Primary School; acquired a flight turnaround management system; refurbished office facilities for staff; invested in modern ICT equipment; commenced cargo warehouse facilities rehabilitation in line with the company's strategic thrust; renewed International Industry Certifications; completed the 2024 audits of the Zimbabwe Dry Port; and the Zimbabwe NHS 2024 audits are almost complete.
TK: What have you done for employees?
GN: The company has revived staff medical aid after its suspension at the beginning of October 2024, paid off all outstanding pensions to those who had exited the company as far back as 2022. Monthly pension contributions have also commenced. It paid off outstanding tax liability during the period. Staff salaries are being paid and the company is up to date. These changes reflect the board’s dedication to restoring NHS's image as a respectable corporate entity and positioning the company for long-term success.
TK: What new innovations has your board introduced in light of stiff competition the NHS is facing from private players?
GN: The company recently acquired critical Aviation ICT Infrastructure. This cutting-edge Flight Turnaround Management System embodies the confluence of technology and aviation expertise, designed to optimise flight operations with precision and safety at the forefront. This will undoubtedly result in a surge in our operational efficiency. The NHS has invested in modernising its equipment and facilities.
TK: As part of its revival plan, is the NHS seeking regional partnerships?
GN: Yes, NHS is open to regional partnerships to enhance its operations and services. The company manages the Zimbabwe Dry Port at Walvis Bay, which provides regional merchants with a direct alternative shipping route, and regional partnerships in that regard are welcome. For the record, please do kindly note that such partnerships will not include the sale of equity as a constituent element. The discussions will be limited to build-operate-transfers (BOTs), public-private partnerships (PPPs) and/or joint ventures.
TK: Which entities has the NHS engaged?
GN: While we cannot comment on specific matters for reasons aforestated, we would like it to be understood that the NHS follows due process in all its dealings and transactions. The company is committed to transparency, adherence to regulatory requirements and proper governance standards in considering any proposals or initiatives tabled.
TK: What are your short-term growth plans for the NHS?
GN: Our short-term growth plans include expanding NHS’s presence in the dry ports business to enhance its logistics and cargo handling capabilities; upgrading equipment and infrastructure; enhancing customer experience; implementing the flight turnaround management system; and diversification. These plans are designed to drive growth, improve operational efficiency, and enhance customer satisfaction in the short term to support Zimbabwe’s National Development Strategy 1 (NDS1) and the incoming NDS2.
TK: How much did the entity generate last year?
GN: The company generated US$15,9 million.
TK: How much is the NHS projecting to generate this year?
GN: The company is projecting to generate US$16,1 million. We would like to thank all those, including yourself, who continue to support us as we continue to rebuild our brand, NHS.
