No Mercy! ZIMRA Freezes TelOne Accounts Over Massive Tax Bill
The Zimbabwe Revenue Authority (ZIMRA) has frozen TelOne’s bank accounts over unpaid taxes, in a dramatic move that highlights the telecom giant’s ongoing cashflow crisis. The action comes amid revelations that the government itself reportedly owes TelOne a staggering US$19 million (approx. R350 million), fuelling a spiral of unpaid bills and delayed operations.
“The company is struggling”
Speaking after the 11th Annual General Meeting held in Harare, TelOne Chief Executive Officer, Engineer Lawrence Nkala, confirmed that the situation had reached critical levels due to the government’s non-payment.
“The company is struggling. We are currently owed about US$19 million by various government ministries, departments, and agencies. This has made it very difficult for us to function normally,” said Nkala.
He explained that the debt had directly contributed to a failure to meet statutory obligations, including taxes.
“This delay in payments has created serious liquidity challenges. We are now unable to meet tax payments, utility bills, and even delay salaries,” he said.
The garnishing of TelOne’s accounts by ZIMRA has left the parastatal reeling, with core operations threatened.
“We are under immense pressure”
Nkala said the situation was spiralling out of control and causing anxiety among staff.
“We are under immense pressure. Our workers are affected. We’ve had to delay salary payments and we are negotiating with the authorities to find a workable solution,” Nkala told ZiFM Stereo News.
He also appealed for urgent government intervention to rescue the company and prevent further damage to its operations.
“This is a national strategic asset. We can’t afford to collapse. We need a clear framework on how and when these dues will be settled,” he said.
ZIMRA unmoved
ZIMRA has not yet issued an official statement on the garnishee order, but insiders say the tax authority is determined to tighten compliance across the board. The action against TelOne is part of a broader clampdown on parastatals and corporates that have fallen behind on tax obligations.
A government insider who declined to be named said:
“ZIMRA is taking no prisoners. Even if you’re owed money by government, that doesn’t excuse you from paying your taxes. Everyone has to comply.”
The financial squeeze at TelOne is expected to have ripple effects on the telecommunications sector and public services.
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The post ZIMRA Freezes TelOne Accounts Over Unpaid Taxes As Taxman Takes No Prisoners appeared first on iHarare News.
