The issue of Zimbabwean companies and defaulting on pension contributions is an emotional one for me. My father used to work for a notable Zimbabwean mining enterprise. Some years back it emerged that for some time pension contributions were not being credited to employees’ accounts. Sure enough, payslips were showing pensions deductions were done. Yet NSSA said they had not been receiving any of the said contributions from the company. The money was going into some pockets. I will not name the mining enterprise in question but some of you might know it. It infuriates me when I see companies robbing people of their dues.
Insurance And Pensions Commission Of Zimbabwe (IPEC) Recently Published A-List
Companies are mandated to make compulsory pension contributions for the sake of their employees. Yet IPEC has come out saying there are numerous companies in Zimbabwe defaulting on their pension contributions. The most disgusting thing is that such defaulters are still deducting the pension contributions from employees’ salaries. This is exactly what I mentioned earlier and it is so disappointing that this is still happening. IPEC has released a list of the top 50 companies in Zimbabwe that default on pension contributions. You will be stunned to notice some so-called big Zimbabwean brands on that list. Here is what IPEC said regarding the matter:
“IPEC has noted with concern, the continued failure by some sponsoring employers to remit pension contributions to their respective pension funds, to the detriment of pension scheme members, who end up receiving reduced or no benefits, when they become due. IPEC has been receiving complaints from pension scheme members who have received reduced or no benefits owing to failure by their sponsoring employers to remit pension contributions after deducting the same”.
Some Notable Defaulters On The List
What is strange is that even some parastatals are included on the list. Here are some of the most notable companies (or parastatals) on the list:
Let me say something here before proceeding, ZIMRA, seriously? This is shocking, especially considering how they have always been gloating about exceeding revenue collection targets. Surely they have no excuse to default on pension contributions but it is happening.
ZESA Holdings (including its subsidiaries)
National Railways of Zimbabwe (NRZ)
This also comes as surprise given how productive and lucrative their operations have been all along.
Bulawayo, Chitungwiza, and Harare City Councils
These are the very same city councils well known for extravagant expenditures, incessant rates hikes, and poor service delivery
Seems mining enterprises have a habit of defaulting on pension contributions. 3 of them in these examples I listed – it is quite telling.
Civil Aviation Authority of Zimbabwe (CAAZ)
Grain Marketing Board (GMB)
National Foods Limited
It is worth mentioning that Simbisa and National Foods are significantly controlled or owned by Innscor Zimbabwe. Then in National Foods, Innscor owns a 37.82 per cent stake.
It is mindboggling that so-called big or reputable companies are defaulting on pension contributions. Even more startling is that some parastatals are doing the same. When you look at these examples these are also those who tend to be given preferential treatment. Are these somehow sacred cows that can do whatever they want? If they are not sincere about employees’ pensions why deduct them in the first place? After all, they mostly pay their employees peanuts as it is. All of this is highly depressing and so unethical!