Categories: Stories

Hwange Colliery gets $7 million bailout from Reserve Bank of Zimbabwe

The Reserve Bank of Zimbabwe has given Hwange Colliery a $7 million bailout to settle part of salary arrears, which now stretch over three years, a junior minister told Parliament.

The Deputy Minister of Public Service, Labour and Social Welfare, Tapiwa Matangaidze was responding to members of Parliament who were debating a motion on the Second Report of the Portfolio Committee on Public Service on the working conditions at Hwange Colliery, National Railways of Zimbabwe (NRZ) and Gwayi Refractories.

The debate lasted late on Tuesday, with MPs accusing government officials of running the firms into the ground through corruption and looting.
MPs accused management of the parastatals of treating workers like slaves, and ministers and government officials of turning a blind eye to the abuses.

Matangaidze said NRZ currently has outstanding salary arrears for over 16 months, while the coal miner owes workers over three years’ wages.

“Hwange Colliery has secured $7 million from the Reserve Bank of Zimbabwe and intends to pay employees 22 percent (of the owed amounts) in the first months (of this year) and then stagger the remainder,” he said.

Government holds 37 percent shareholding in the struggling coal miner.

Matangaidze was silent on a similar bailout for NRZ.

He said an inter-ministerial taskforce will follow up on the report and propose solutions to the crises at the parastatals.

(42 VIEWS)

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

Indian think tank says Starlink is a wolf in sheep’s clothing

An Indian think tank has described Starlink, a satellite internet service provider which recently entered…

November 18, 2024

ZiG firms against US dollar for 10 days running but people still do not have confidence in the currency

Zimbabwe’s new currency, the Zimbabwe Gold (ZiG), firmed against the United States dollars for 10…

November 16, 2024

Zimbabwe among the top countries with the widest gap between the rich and poor

Zimbabwe is among the top 30 countries in the world with the widest gap between…

November 14, 2024

Can the ZiG sustain its rally against the US dollar?

Zimbabwe’s battered currency, the Zimbabwe Gold, which was under attack until the central bank devalued…

November 10, 2024

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024

The Zimbabwe government and not saboteurs sabotaging ZiG

The Zimbabwe government’s insatiable demand for money to satisfy its own needs, which has exceeded…

October 20, 2024