Kuvimba House backs govt in compensating pensioners
STATE-OWNED enterprise Kuvimba Mining House has disbursed US$354 700 in compensation to pensioners who suffered losses during the 2019 currency reforms, said Finance minister Mthuli Ncube in his budget statement on Thursday.
The mining group that is linked to business tycoon Kudakwashe Tagwirei (pictured) declared its first dividend last year, paying US$5.2 million to its investors, who include the government, after it reported record production.
In this regard, the Insurance and Pensions Commission got US$400 000. The dividend was paid to shareholders in the first quarter of 2022.
“A total of 3 547 pensioners from the first group of vulnerable pensioners have been paid US$100 each, translating to a disbursement of US$354 700, out of the US$400 000 apportioned to the compensation as at 30 September 2022,” Ncube said.
In February 2019, the Reserve Bank of Zimbabwe introduced a market-determined exchange rate that entailed a transition from exchange rate of US$1:RTGS$1, initially to US$1:RTGS$2.5, which resulted in a loss for pensioners.
In 2020, the government promised to compensate the small and vulnerable depositors who had US$1 000 and below, for the exchange rate movement with resources equivalent to US$75 million. Ncube said the first round of compensation was paid to the most vulnerable pensioners with low annual income and the remainder would be paid when the government has more resources.
“The first dividend tranche targeted pensioners and beneficiaries earning an annual pension below ZW$1 000 as at 31 December 2020 and subsequent disbursements will be made once more resources are available,” he said.
Kuvimba Mining House is the largest mining house in Zimbabwe, owning shares in eight mining companies in the country. These include the mining blue chip, Bindura Nickel Corporation, Freda Rebecca Gold Mine, Shamva Gold Mine, Jena Mine, Elvington Mine and Zim Alloys.
In June this year, it acquired 50% stake in Great Dyke Investments (GDI) from Afromet Joint Stock Company, thereby becoming the majority shareholder in the platinum mine. GDI is the largest system of platinum group metals mineralisation in the world.