ARRANGEMENT OF SECTIONS
1. Short title.
3. Formation of company.
4. Objects of the company.
5. Initial shareholding in company.
6. Transfer of certain assets and obligations of State to company.
7. Engagement by company of certain employees of State.
To provide for the formation of a company to take over the functions, assets,
liabilities and staff of the Central Mechanical Equipment Department in the Ministry
of Transport and Energy and to provide for matters connected with or incidental to
Commenced: 22nd December 2000
ENACTED by the President and the Parliament of Zimbabwe.
1 Short title
This Act may be cited as the Central Mechanical Equipment Department
(Commercialisation) Act, 2000.
In this Act-
"company" means the company formed for the purposes referred to in section three;
"Department" means the Central Mechanical Equipment Department of the Ministry
of Transport and Energy;
"Minister" means the Minister of Transport and Communications or any other
Minister to whom the President may, from time to time, assign the administration of
"transfer date", in relation to any asset or right, means the date fixed in terms of
subsection (1) of section six for the transfer of that asset or right from the State to the
3 Formation of company
The Minister shall take such steps as are necessary under the Companies Act [Chapter
24:03] to secure the formation of a company limited by shares, which company shall,
subject to this Act, take over the functions, assets, liabilities and staff of the
Provided that, if such a company has been incorporated for the purpose before the
date of commencement of this Act, the Minister may, by notice to the company,
direct that that company shall be the company for purposes of this Act.
4 Objects of the company
(1) The objects of the company shall be¾¾
(a) to provide and operate transport services; and
(b) to provide plant and equipment for the construction of roads, dams,
TITLE 22 bridges and other infrastructure; and
(c) to perform any other function set out in its memorandum of
(2) In the performance of its functions, the company shall give priority to serving the
needs of the State, to the extent that it is compatible with sound business practice to
5 Initial shareholding in company
(1) All the members of the company on its incorporation shall be persons nominated
by the Minister with the approval of the Minister responsible for finance, and shall
hold their shares on behalf of the State.
(2) Any person so appointed to hold shares shall do so nominally as an agent for the
6 Transfer of certain assets and obligations of State to company
(1) The assets and rights of the State which¾¾
(a) immediately before the date of commencement of this Act, were used
or otherwise connected with the functions of the Department; and
(b) are specified by the Minister with the approval of the Minister
responsible for finance;
together with any liabilities or obligations attaching to them, shall be transferred to
the company with effect from such date and on such terms and conditions, whether
relating to payment or otherwise, as the Minister may specify by written notice to the
(i) the Minister may specify different dates for the transfer of different
assets and rights;
(ii) this subsection shall not be construed as preventing the Government
from leasing any of the State's assets to the company or otherwise permitting the
State to use any such assets, on such terms and conditions as may be agreed between
the parties concerned.
(2) On the relevant transfer date, every asset and right of the State which the Minister
has directed shall be transferred to the company, together with any liability or
obligation attaching to it, shall vest in the company, subject to any terms and
conditions specified by the Minister in terms of subsection (1).
(3) All bonds, hypothecations, deeds, contracts, instruments, documents and working
arrangements which subsisted immediately before the relevant transfer date in
relation to any asset, right, liability or obligation transferred to the company under
this section and to which the State was a party shall, on and after that date, be as fully
effective and enforceable against or in favour of the company as if, instead of the
State, the company had been named therein.
(4) It shall not be necessary for the Registrar of Deeds to make any endorsement on
title deeds or other documents or in his registers in respect of any immovable
property, right or obligation which vests in the company under this section, but the
Registrar of Deeds, when so requested in writing by the company in relation to any
particular such property, right or obligation, shall cause the name of the company to
be substituted, free of charge, for that of the State on the appropriate title deed or
other document or in the appropriate register.
(5) Any cause of action or proceeding which existed or was pending by or against the
State immediately before the relevant transfer date in respect of any asset, right,
liability or obligation which vests in the company under this section, may be enforced
or continued, as the case may be, by or against the company in the same way that it
might have been enforced or continued, as the case may be, by or against the State
had this Act not been passed.
(6) Subsection (5) shall not apply to any cause of action or proceedings existing or
pending immediately before the relevant transfer date between the State and a person
employed by the State.
7 Engagement by company of certain employees of State
(1) Subject to the Public Service Act [Chapter 16:04] and to the consent of the
employees concerned, the company shall engage such of the persons who were
employed in the Department on the date of commencement of this Act as the Public
Service Commission, the Minister and the company's board of directors may
(2) Persons engaged in terms of subsection (1)¾¾
(a) shall be engaged on such terms and conditions as the company's board
of directors may fix with the agreement of the persons concerned and after
consultation with the Public Service Commission:
Provided that such terms and conditions shall not be less than
that which the employee would be getting at the date of transfer:
(b) without derogation from paragraph (a), may be permitted to continue
contributing towards a pension in terms of the Public Service (Pensions) Regulations,
1992 (Statutory Instrument 124 of 1992), or any other enactment, subject to such
terms and conditions as the Public Service Commission may fix with the approval of
the Minister, the Minister responsible for finance and the company's board of
(3) Terms and conditions fixed in terms of paragraph (b) of subsection (2) may
(a) payments by the company's board of directors to the Consolidated
Revenue Fund to compensate the State, wholly or partially, for pensions and other
benefits paid or payable to or in respect of persons engaged in terms of subsection
(b) the application, non-application or modification of the Public Service
(Pensions) Regulations, 1992 (Statutory Instrument 124 of 1992), in regard to persons
engaged in terms of subsection (1).
(4) Notwithstanding any other provision of this Act, a person who¾¾
(a) as a member of the Public Service, was afforded an opportunity of
engagement by the company in terms of this section and declined to avail himself of
the opportunity; and
(b) subsequently left the Public Service and as a consequence became
entitled to pension benefits in respect of the abolition of his post;
shall not be engaged in any capacity by the company for a period of ten years from
the date on which he left the Public Service, unless the Minister and the Public
Service Commission consent to his engagement.