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The Zimbabwe Iron and Steel Company (Ziscosteel) has announced that it is working to help its former employees receive their pension pay-outs, but that the responsibility now lies with the government. This follows the investment of US$1.3 billion over three years by Kuvimba Mining House (KMH), which is working to revive the mothballed Redcliff-based steelworks. KMH, which has extensive mining interests in gold, nickel, chrome, and platinum and is backed by both private and state shareholding, has been revitalizing closed gold mines and won the tender to revive Ziscosteel ahead of six other bidders.
Ziscosteel’s former employees were left empty-handed over a decade ago when the giant steelworks collapsed in 2008. In an interview with NewZimbabwe.com, Ziscosteel CEO Farai Karonga stated that the issue of pay-outs is “basically not a ZISCO issue anymore.” He explained that the pensions were wiped out after being wholly converted to local currency through the government’s Exchange Control Directive RT120/2018. Karonga said that while Ziscosteel will assist the former employees as part of its corporate social responsibility, the issue is now a dispute and the former employees are going to parliament to correct it. He said:
<blockquote>
Basically, because the Debt Assumption Act took over their debt, it’s basically a Ministry of Finance issue but we participate as a pension fund trusteeship.
We are there to assist them. The only hiccup that has happened is that initially their pensions were paid in USD and then there was a time the Exchange Control Directive came in and it wiped their pensions.
It’s now a dispute because they are not in agreement with that. They don’t want a valuation of their pensions.
We are helping them to make representations to parliament but it’s basically not a Ziscosteel issue anymore. But from a social responsibility perspective, we are part of the model to get them a fair deal.
</blockquote>
Ziscosteel was the largest steelworks in Zimbabwe, employing about 5,500 people in the 1990s. Since then, the company has struggled to find a meaningful investor partly due to negative perceptions affecting the local economy, until last year when KMH expressed interest in the concern.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

Pindula News

Ziscosteel Says It Is Assisting Former Employees Get Pension A Decade Later

About 20 members of the Ziscosteel Pension Fund have petitioned Parliament to press for the payment of US$3 million in outstanding pensions.
The firm’s ex-workers are ready to be paid in Zimbabwe dollars, NewsDay reported citing Ziscosteel Pension Fund’s seven-page petition.
The petition which was submitted to the Parliamentary Portfolio Committee on Finance and Economic Development dated February 3, 2023, showed that the 20-member group served the steelmaker for a combined 600 years.
Zimbabwe Pension and Insurance Rights Trust (ZimPIRT), which is representing the ex-Zisco staff, says its attempts to be paid pensions have been frustrated for a period spanning over half a decade. Martin Tarusenga, general manager at ZimPIRT said:
<blockquote>
With regards ZimPIRT public role, the organisation prepared a pension benefit report for 20 members of Zisco Steel Pension Fund for onward submission to its board of trustees, for its consideration. 
The report establishes that Zisco Steel Pension Fund owes the 20 pensioners a total of US$3 million (or the equivalent in Zimbabwe dollars at the prevailing exchange rate). This US$3 million is in pension capital serving to support their pension benefits, that is the optional cash commutation and/or the monthly pension payments. This capital accrued over the period of participation averaging 30 years per member.
I understand that these members proceeded to use this report in their appeal to the regulator of pension and insurance industries, Insurance and Pensions Commission (Ipec), when it occurred to them that the board of trustees was not acting soon enough.
</blockquote>
He said the pensioners have not to date got a response to this report from either the board of trustees or Ipec.
Tarusenda added that the US$3 million is in pension capital serving to support their pension benefits and it accrued over the period of participation averaging 30 years per member.
<h2><a href="https://zero.pindula.co.zw/">More Pindula News</a></h2>

Former Ziscosteel Workers Petition Parliament Over US$3 million In Outstanding Pensions

Former <a href="https://www.pindula.co.zw/Zisco_Steel_blast_Furnace_Scandal">Ziscosteel</a> employees have now gone for about a decade without receiving their pension pay-outs after the government-owned company collapsed.
In 2015, then Finance Minister, Patrick Chinamasa, announced during a budget presentation that Ziscosteel employees had been terminated on three months’ notice with effect from December 31 of that year.
Since then, the workers have not received their pensions.
Ziscosteel board chairperson, Martin Manuhwa, recently addressed some of them at the company’s Redcliff premises but did not indicate when the pension payments would be made, <a href="https://www.newzimbabwe.com/zisco-ex-workers-still-to-get-pension-payments-10-years-after-company-collapsed-many-have-died-without-getting-their-money/">NewZimbabwe</a> reported. He said:
<blockquote>
The issue of pensions is very painful.
As Ziscosteel, we are proud of pensioners because they are the ones who made this company to be what it is.
As Ziscosteel, we are urging the pension fund, IPEC and government to ensure that the commitment made in 2018 for the pensions through the pension fund.
As ZISCO board and management, we … we raised the issue with the authorities … that or our pensioners are not getting anything.
Even the industry minister spoke about this issue in parliament to have this issue resolved. She is so concerned about it.”
It’s not a ZISCO management issue per se.
The company will come in through their pension contribution which they have to be paying … (and) our concern is that Zisco must pay its portion. We feel for you and we will raise this issue.
</blockquote>
Redcliff Member of Parliament (MP) Lloyd Mukapiko said it’s very sad that up to now the ex-workers are yet to receive their pensions. He added:
<blockquote>
What is more saddening is the fact that some of these former workers are dying without receiving their pensions. There is a lot of uncertainty on when these former employees will receive their pensions.
</blockquote>
Zisco Steel, also known as Zimbabwe Iron and Steel Company, was a state-owned steel company in Zimbabwe. 
At its peak, it was one of the largest steel companies in the country and a major producer of steel products. 
However, the company faced several challenges, including a shortage of raw materials, mismanagement and financial difficulties, leading to its eventual closure. 
<h2><a href="https://zero.pindula.co.zw/">More Pindula News</a></h2>

A Decade Later, Former Ziscosteel Employees Haven't Received Their Pension Pay-outs

Traditional Chiefs from the Midlands Province on Friday went to the Ziscosteel plant in Redcliff where they performed rituals to dedicate the plant to ancestors.
Traditional opaque beer and drum beating, as well as dancing, characterised the all-night ceremony as the traditional leaders performed their rites.
The rituals were performed as Ziscosteel is engaging stakeholders ahead of the anticipated reopening. Ziscosteel Public Relations Manager, Mrs Patricia Muzenda said traditional chiefs were key stakeholders. Said Mrs Muzenda:
<blockquote>_We have been engaging all our stakeholders as we look forward to reopening the company. In that vein, the chiefs being key stakeholders requested that they wanted to perform their traditional rituals at the plant. So, the activity was a result of the request from our chiefs._
_We are a nation with our own beliefs and as a company, we just had to comply with the request by the chiefs so that they can perform their rituals._</blockquote>
She added that it was not the first time for such rituals to be held at the company.
Chief Weight Gwesela reiterated Mrs Muenda’s remarks saying said the function was meant to dedicate Ziscosteel to their ancestors. He said:
<blockquote>_We have different beliefs according to countries and as Zimbabwe, we believe in dedicating everything we do to our ancestors. The event was for us to plead with our ancestors to watch over operations at the company. Remember this company deals with minerals and our ancestors watch over the minerals._</blockquote>
Also in attendance were chiefs, Mupamombe, Malisa, Chiundura, Gambiza and Kazangarare, and officials from the Kwekwe District Development office as well as Ziscosteel representatives.
Ziscosteel (Zimbabwe Iron and Steel Company), is the largest steelworks in Zimbabwe and is located just outside Kwekwe, in Redcliff.
Over the years the company has faced many operational problems and corruption scandals.
More: <a href="https://news.pindula.co.zw">Pindula News</a>; <a href="https://www.chronicle.co.zw/chiefs-dedicate-zisco-to-ancestors/">Chronicle</a>

Chiefs Dedicate ZISCOSTEEL To Ancestors

Former Ziscosteel workers are crying foul over the paltry packages that they were given by the company on September 27, 2019, in <a href="https://www.pindula.co.zw/RTGS" rel="noopener noreferrer" target="_blank">RTGS</a> at the exchange rate of 1:1.
They were retrenched in 2016 and the packages were calculated in US dollars, prompting their lawyer, Devias Mujaya of Mujaya and Muchona lawyers to demand that the payments be settled using the interbank rate. Said Mujaya:
<blockquote>It’s not feasible because we can’t have a situation whereby there is a law which says 1:1 yet there is an interbank exchange rate between the two currencies which clearly shows that they are not at par.
Taking the two currencies as being at par is a fallacy and it only serves to prejudice the suffering ex-employees.</blockquote>
The government liberalised the exchange rate at the beginning of this year by abandoning the 1:1 exchange rate between the US dollar and the bond note.
The value of the Zimbabwe dollar has plunged in value, with the exchange rate now at 1:15.
<h4>More: <a href="https://www.newsday.co.zw/2019/10/ex-zisco-workers-get-measly-packages/" rel="noopener noreferrer" target="_blank">NewsDay</a></h4>

Former Ziscosteel Workers Get Meagre Terminal Benefits

The entire Ziscosteel board has been retired, having been in place for over 10 years.
Industry and Commerce Minister Nqobizitha Mangaliso Ndlovu said that a new board of directors will be appointed soon. He said:
<blockquote>We have retired the entire old board. The new one is expected anytime soon. In fact, I already have the names and am awaiting approval by President Emerson Mnangagwa.
The board has been there for long, more than 10 years. Under normal circumstances, the board was supposed to be in office for two terms of four years, that is a total of eight years in office.
We are actually celebrating their tenure and appreciating their hard work in trying to turn around the fortunes of our great national asset.</blockquote>
There were reports of asset stripping at Ziscosteel as it lay derelict for many years. This was revealed by Midlands Provincial Affairs Minister Larry Mavima during the commissioning of ZimCoke plant.
Minister Ncube said that the retiring of the board is part of the solution. He added that the coming in of ZimCoke will bring with it security for the entire Ziscosteel plant.
<h4>More: <a href="https://www.herald.co.zw/government-retires-ziscosteel-board/" rel="noopener noreferrer" target="_blank">The Herald</a></h4>

Govt Retires Entire Ziscosteel Board Of Directors

Chinese firm R&amp;F will invest $1 billion to revive the Zimbabwe Iron and Steel (Ziscosteel). 
Industry Minister Mike Bimha said that mining will commence within 18 months once negotiations have been completed. Said Bimha:
<blockquote>We are looking at an initial injection of over $1 billion and it will probably come to $2 billion when we proceed but it’s not a small project, it’s a huge project and a lot of work to be done.</blockquote>
Yesterday, R and F president Mr Jang Li paid a courtesy call on President Robert Mugabe at State House.
More: <a href="http://source.co.zw/2017/08/breaking-chinese-firm-invest-1-billion-revive-ziscosteel/">Source</a>, <a href="http://www.herald.co.zw/govt-secures-1bn-for-zisco-revival%E2%80%A2-investment-projected-to-reach-2bn-%E2%80%A2-implementation-framework-signed/">Herald</a>
<h2></h2>

Updated: Chinese firm to invest $1 billion to revive Zisco Steel

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