The Zimbabwe Revenue Authority (ZIMRA) has taken decisive action by freezing the bank accounts of state-owned telecom operator TelOne, citing overdue tax payments.
The move has exposed the depth of TelOne’s financial difficulties, worsened by a reported US$19 million debt owed to the company by various government departments and agencies.
Speaking after TelOne’s 11th Annual General Meeting in Harare, Chief Executive Officer Engineer Lawrence Nkala painted a bleak picture of the company’s finances. He confirmed that outstanding payments—largely from the government—have crippled the firm’s ability to meet key obligations, including taxes.
“We’re under severe financial strain,” Nkala said. “We are owed roughly US$19 million by government ministries and agencies. This has significantly disrupted our operations.”
He explained that the cash shortfall has affected TelOne’s ability to fulfill its statutory duties such as tax remittances and payment of utility bills, and has even resulted in delays in paying staff salaries.
With ZIMRA executing a garnishee order, TelOne’s core functions are now at risk, according to Nkala, who admitted that the situation is placing significant stress on the company’s workforce.
“Our employees are feeling the impact. Salaries have been delayed, and the uncertainty is unsettling. We are currently in talks with the relevant authorities to find a resolution,” he said in an interview with ZiFM Stereo News.
He further appealed for swift government action, noting that TelOne’s continued stability is critical to national infrastructure.
“This company plays a strategic role for the country. We cannot afford to let it fail. There must be a clear plan on when and how the outstanding debts will be cleared,” he emphasized.
While ZIMRA has yet to release an official comment on the garnishing of TelOne’s accounts, sources within the tax body suggest the move is part of a broader initiative to enforce tax compliance, especially among parastatals and large corporations.
A government official, speaking anonymously, remarked:
“ZIMRA is being strict across the board. Owing money to government doesn’t exempt an entity from paying taxes. Compliance is expected from everyone.”
The fallout from TelOne’s financial woes could have broader implications for the country’s telecom sector and the delivery of public services reliant on its infrastructure.
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