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“Management announced last week that it was suspending payment of salaries citing a number of reasons.”
It is understood that Essar is awaiting finalisation of the deal with the Government before it fully invests in the company.
“Essar are saying Government is yet to conclude the deal it entered with the Indian company and they have pumped a lot of money so far in salaries at a time when there is no production,” a source said.
“A delegation of workers went to Harare last week and met Minister Ncube and Essar board chairman. They wanted to know the reasons for the suspension of salaries and the delay in the conclusion of the deal.”
Minister Ncube yesterday confirmed the development.
“That has been the case for the last four to five weeks,” he said.
Minister Ncube also confirmed meeting NewZim Steel workers over the issue.
“I did meet the employees. Essar is saying we have been paying salaries since March last year and we (Government) are failing to sign a document transferring mining rights,” Minister Ncube said.
He hinted that the Essar deal will not materialise unless Mines and Mining Development Minister Obert Mpofu issued the new investors a certificate for mining rights.
Minister Ncube bemoaned the delay in the conclusion of the deal.
“We are taking 14 months to sign a document which in a normal country should take a week,” he said.
Minister Ncube said the deadline for the finalisation of the Essar deal was April 13. But Minister Mpofu last night said: “That issue does not fall under my ministry. Talk to Ncube.”
Workers report for duty everyday, but there is no production taking place.
Online Reporter