Zimasco plans property spin-off to pay retrenched workers

THE country’s biggest ferrochrome smelter in terms of capacity, Zimbabwe Mining and Smelting Company (Zimasco) has contracted three real estate firms to evaluate its properties in Shurugwi as part of measures to raise money to pay its retrenched workers.

Zimasco retrenched its entire workforce in Shurugwi citing viability challenges which it blamed on the falling prices of chrome on the international market. Gweru based real estate firms, Trevor Dollar and Verocy Real Estate were contracted to evaluate the properties.

The third real estate company could not be immediately ascertained.

Zimasco administration manager, Clara Sadomba could neither confirm nor deny the developments saying the matter was sub judice since the company has applied for judicial management.

“As you may be aware Zimasco has applied to be placed under judicial management and the matter is still before the courts. As such, we’re not at liberty to comment on this and other matters of a similar nature as they’re sub judice,” said Sadomba.

The real estate firms could not shed light on the developments citing client confidentiality.

However, some former employees confirmed the developments with some speculating that once the evaluation exercise is completed, they will be given the houses as part of their retrenchment packages.

“Three companies came to evaluate the houses in November last year and it went on until December. We hear that they want to offset some of the monies in retrenchment packages by giving us houses if the package is commensurate with the value of the house,” said an ex-Zimasco employee who did not want to be named.

Zimasco’s bid to be placed under judicial management was quashed last year by the High Court after Justice Tawanda Chitapi ruled that the company had failed to comply with Section 299 of the Companies Act on the submission of such applications to court.

The firm has resubmitted its bid to save its assets from possible attachment as levels of its indebtedness to banks, employees and other creditors increased from $35 million to $65 million in 2015. China’s Sinosteel Corporation is the company’s major shareholder.