Prof Moyo sues Hwange over debt

Mashudu Netsianda Senior Court Reporter
THE Minister of Higher and Tertiary Education, Science and Technology Development, Professor Jonathan Moyo, has taken the Hwange Local Board to court for failing to remit more than $16,000 in levies from its assessed wage bill accrued over a two-year period. In terms of section 53 of the Manpower Planning and Development Act, the minister is empowered to levy every employer through a Statutory Instrument (SI) which levy is payable to the Zimbabwe Manpower Development Fund (Zimdef).

Prof Moyo, who is the plaintiff in the matter, last week filed summons at the Bulawayo High Court citing the Hwange Local Board as the defendant. The minister is demanding the sum of $16, 829,92 from the local authority for levies which were not remitted between November 2013 and January 2015. Prof Moyo, in his summons filed through lawyers Dube-Banda, Nzarayapenga and Partners, said the Hwange Local Board had continuously neglected or refused to settle the debt despite demand.

“For the period from November 2013 to January 2015 the defendant did not remit its full levy due on monthly basis as required by the regulations,” said the minister. According to the court papers, Prof Moyo delegated Zimdef levy inspectors who assessed Hwange Local Board’s wages bill, payrolls and other financial statements for the period between November 2013 and January 2015 during which a sum of $21,829,92 was arrived at as the balance of levies due and surcharges for that period.

“The defendant, despite assessment by levy inspectors, still has the duty to calculate, declare and pay its levy obligation,” said the minister’s lawyers. Upon being served with a letter of demand, the Hwange Local Board made an undertaking to pay $5,000 by May 12, 2015, and thereafter $500 per week. However, the local authority failed to honour the promise and only paid $5,000 leaving a balance of $16, 829,92.

In terms of the Manpower Planning and Development Act as read in conjunction with section 3 of the Manpower Planning and Development (Levy) Notice SI 74 of 1999, every employer is obliged to pay a levy of one percent of its total assessed wage bill and other leviable benefits on employees and directors on or before the first day of each month.

Prof Moyo’s lawyers said section 5 of the Manpower Planning and Development (Levy) Notice SI 74 of 1999, empowers Zimdef to impose a 10 percent surcharge on overdue levies. According to the court papers, the minister is demanding that the Hwange Local Board pay the cost of suit at attorney-client scale.

The Hwange Local Board has not yet filed a notice to enter an appearance to defend the summons. In a letter acknowledging indebtedness to Zimdef, the board said it had fallen on hard times due to harsh economic conditions. The beleaguered local board said it is also sitting on a salary backlog as its workers had gone for several months without pay.