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before a parliamentary committee to explain why progress on NewZim Steel has stalled.
NewZim Steel has since suspended paying salaries for workers.
The Industry and Commerce parliamentary portfolio committee yesterday resolved to summon the two ministers to explain what was stopping Essar from commencing operations.
Committee chairperson and Buhera North MP, Cde William Mutomba (Zanu-PF) confirmed that the committee met and resolved to call the two ministers.
“We met as a committee today (yesterday) and legislators expressed concern on what is happening at Essar.
“The President officially launched NewZim Steel and everyone had high expectations, saying operations will now start,” said Cde Mutomba in an interview.
“We have decided to call the two ministers to explain to us.
“They are supposed to appear before our committee on 28 May to explain the challenges they are facing.”
Cde Mutomba said the committee was worried with the reports that Essar has stopped paying workers salaries.
He said the committee was keen to understand why the issues stalling progress were not first thrashed out by the relevant Government departments before the deal was signed.
“We don’t understand. Why is it that these things hampering the full implementation of the Essar deal were not discussed and agreed before signing it?
“These are some of the issues we want an explanation on as part of our oversight role,” he said.
Essar is reported to be reluctant to continue pumping more money into NewZim Steel, which is yet to iron out mining rights from the Government.
The Redcliff-based company has over 1 500 workers whom it owes $12 million, a debt it assumed from the defunct Ziscosteel.
Essar is reported to have spent millions of dollars in wages since March last year without production.
Essar is now the majority shareholder in NewZim Steel after Government sold its 54 percent stake in the company.
Workers’ representatives met Industry and Commerce Minister Welshman Ncube over salaries in Harare last Thursday.
It is understood that Essar is awaiting finalisation of the deal with the Government before it fully invests in the company.
Workers report for duty everyday, but there is no production taking place.
Minister Ncube said the deal to revive the steel mining giant will not materialise unless Minister Mpofu issues the new investors a certificate of mining rights. But Minister Mpofu said Minister Ncube was the one responsible for the Essar deal.
Online Reporter