Chronicle Editor
Michael Magoronga, Midlands Correspondent
Mr Ndodana Moyo (67) lost his job when things turned for the worst at the now-defunct iron and steel company, Ziscosteel.
Almost 10 years down the line, he is yet to get his terminal benefits.
“I’m struggling to make ends meet as we speak. I can’t afford to fend for my family and things are just tough. Even if the company re-opens today, I’m too old to be working again. Most of my friends and former workmates have since died without enjoying their pensions,” said Mr Moyo .
He is part of the over 6 000 former Ziscosteel employees who lost their jobs at the iron and steel giant close to a decade ago. Former Ziscosteel employees are failing to access their pensions and terminal benefits after the largest steel manufacturing company in the region faced operational challenges and folded operations.
For years now, the employees have been trying to access their terminal allowances believed to be hovering around US$1 billion. The company, which employed more than 6 000 workers at its peak, is expected to build its employment base from its former and current employees but not until the outstanding pensions are paid.
Vice-President Dr Constantino Chiwenga was recently in Redcliff where he toured the company and observed progress made by Kuvimba Mining Holdings who were given the mandate to spearhead the resuscitation of the company.
Dr Chiwenga emphasised the need by Kuvimba to settle the pensions saying it was a serious issue which needed to be dealt with as a matter of urgency.
“Government is deeply concerned with the issue of outstanding pensions owed to former Ziscosteel workers. We want this issue addressed quickly so that we move forward with the resuscitation of the company,” said Dr Chiwenga.
While the Ziscosteel Pension Fund through its Board of Trustees, seemed to have made inroads regarding securing the pensions for its workers, another pensions rights group, Zimbabwe Pensions and Insurance Rights Trust (ZimPIRT), came on board purporting to be fighting for the same cause and since then, confusion has taken precedence.
In line with the Pension and Provident Funds Act, the Board of Trustees represents the Ziscosteel Pension Fund, where the Fund houses all pensioners and other pension fund members. It is this board which has the responsibility of ensuring that the pension fund is administered professionally, its solvency is maintained, it is invested to meet pensioners benefits without fail and to keep funds vested by pensioners safe.
On the other hand, however, Zimbabwe Pension and Insurance Rights Trust (ZimPIRT) filed a petition with parliament, telling legislators to take action over the predicament of the 6 200 Zisco pensioners and ex-workers who have waited for six years to get their pensions, which angered the Benedict Moyo led Board of Trustees.
“We had reached advanced stages as the Board of Trustees and we were only left with a few steps for us to get our pensions and terminal benefits. We are so disappointed that this ZimPIRT organisation just emerged from nowhere and they are now causing chaos. They hijacked the process and are now causing confusion among the pensioners. In fact, our lives are in danger as pensioners are angry at us for not doing anything yet it’s the confusion being caused by this organisation,” said Mr Moyo.
He said it was unfortunate that some members were dying before accessing their terminal benefits.
“We are 6 194 pensioners in total but we have lost more than 200 pensioners before they could enjoy their terminal benefits. This is how serious the issue is. People are dying in numbers and it’s so unfortunate and yet someone just comes from wherever they come from to hijack a programme they know nothing about,” he said.
Mr Moyo castigated ZimPIRT for demanding a US$30 facilitation fee from each pensioner.
“It is so unfortunate that they are targeting vulnerable pensioners and demanding money for facilitating their pensions. We are already struggling and yet they come and pile pressure on the already struggling pensioner,” he said.
Mr Moyo, however, said the call by Dr Chiwenga brought hope to the thousands who are struggling to make ends meet.
“The pronouncement by VP Chiwenga is very positive and encouraging as we have struggled since 2016. We, however, hope that we will get our money with value as promised. After all these years of struggling, we can’t be given peanuts which do not buy anything, and we’re hoping that Government will look into all these issues, not just to give us money without any value,” he said.
Had it not been for the adjournment of Parliament, and the counter petition by ZimPIRT, the trustees could have made a breakthrough by now, according to Mr Moyo. Parliamentary Portfolio Committee on Budget, Finance, Economics and Planning Chairperson Dr Matthew Nyashanu said a report was in place over the matter.
“The report on the petition is ready. As you are aware, the 9th Parliament closed earlier than we anticipated and as a result, a report was not tabled but it is ready,” he said.
ZimPIRT General Manager Mr Martin Tarusenga accused the parliamentary committee of failing to complete its deliberations on the Petition submitted to Parliament by the pensioners.
“The pension fund authority responsible for the running of the Ziscosteel Pension Fund in terms of the Pension and Provident Funds Act, the Board of Trustees, has since 2016 failed to pay the pension benefits due to the pensioners, as provided for in the Rule Book of the Pension Fund, as read together with the Pension and Provident Funds Act.
“First Mutual Life Assurance Company, the administrator of the Pension Fund, custodian of the Fund, also investment manager and underwriter of the Pension Fund has not come forward to honour the pension benefits due, as provided for in the Pension and Provident Funds Act,” said Mr Tarusenga.
Reached for comment, Insurance and Pension Commission (Ipec) Director, Pensions and Life Assurance, Mr Cuthbert Munjoma, said the Commission has not received reports of pensioners being asked to pay consultancy fees to ZimPIRT.
“However, we wish to advise Zisco pensioners and all other pensioners that the Insurance and Pensions Commission is available to handle all your complaints for free. Fund members can approach the Commission if they have complaints or enquiries regards entities under IPEC’s regulatory purview,” he said.
Mr Munjoma said the commission’s objective is to ensure that Zisco pensioners receive pension benefits that meet reasonable expectations, hence the engagements with key stakeholders regarding the matter. Mr Munjoma acknowledged receiving queries from the board of trustees.
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