Biti has money for ex-Rhodesian pensioners but not for elections

Finance Minister Tendai Biti has money to pay former Rhodesian pensioners but has none for national elections which should be held at the end of next month.

Although the amount Zimbabwe owes the pensioners was not disclosed it could be as high as £40 million- about US$63 million.

Zimbabwe says it needs US$132 million to run the elections. Finance Minister Tendai Biti told the Unted Nations yesterday that Zimbabwe did not have the money to hold elections.

That Zimbabwe has money to pay ex-Rhodesian pensioners was disclosed by Lord Wallace of Saltaire in the House of Lords, Britain, this week in response to a question from Lord Goodlad.

Goodlad asked on Tuesday what representations the British government had made to the government of Zimbabwe regarding payment of pensions to former civil servants who were in the public service in the former British colony of Southern Rhodesia.

Southern Rhodesia was the colonial name of Zimbabwe up to 1965 when Ian Smith declared unilateral independence and changed the name of the country to Rhodesia.

The country became known as Zimbabwe- Rhodesia briefly under Bishop Abel Muzorewa and reverted to Southern Rhodesia after the December 1979 Lancaster House Agreement before becoming known as Zimbabwe at independence.

The pensioners in question are the civil servants who were employed in the public service shortly before independence.

In his response Wallace said the British government was constantly in touch with the Zimbabwe government and the last communication was in January.

“The government of Zimbabwe have made it clear that they have the financial resources to pay the outstanding pensions but have been unable to make payments overseas for logistical reasons,” Wallace said.

“Our consul in Harare is in regular contact with the pensions director at the Zimbabwe Ministry of Public Services and we are looking at options whereby we can help facilitate this process.”

On Wednesday Conservative Member of Parliament Stephen Barclay asked why the British government should not withhold aid from Zimbabwe until it pays the pensions, but Junior Minister Lynne Featherstone said Britain had no obligation to pay the pensions.

“Our aid programme to Zimbabwe is driven by the needs of people living in poverty in Zimbabwe. We do not give any funds directly to the government of Zimbabwe whose responsibility it is to pay pensions for former public servants.

“I sympathise with their situation, but the UK has no legal obligation for their pensions. My colleagues in the FCO continue to raise the issue with Zimbabwean Ministers.”

Payment of the pensions is said to have been stopped by the central bank in 2003 when the country ran short of foreign currency.

The Overseas Service Pensioners Association which represents the interests of the pensioners said there are about 1 200 ex-Rhodesian pensioners.

It said that bearing in mind that some had been paid lumpsums on retirement; the pensioners were now owed about £4 million a year.

The Insider wrote to the OSPA to establish the total amount owed but has not received any response yet.

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