Rio Zim subcobtractor pulls out over $4 million debt, workers retrenched

Samson Muchirahondo

Rio Zim subcontractor R. Davis has reportedly pulled out of its deal amid serious tensions over a ballooning debt about $4 million.

Davis was failing to contain costs in the long run prompting it to refuse to renew contracts for its workers.

A move being fought right and centre by the fired workers who are alleging that Government should intervene urgently to reflect the true colours of the new dispensation.

A senior official from Davis confirmed the move.

“Rio Zim owes us over $4 million over the past months, we are equally surprised why it is failing to pay us despite all the amounts of gold ore we were extracting on a daily basis.

“The hostile situation has forced us to stop operations with them while casting our nets wide. Unfortunately we failed to renew our workers contracts. Government should assist us recover our debt while pursuing the legal route,” said the official.

An affected employee, who also pleaded for anonymity said Rio Zim operations had always been susceptible.

“Rio had an agreement with Davis that half of our pay would be in the green buck notes while other half in bond notes, but it used to give us quarter of USD notes opposed to half of the salary.

“Its operations were just questionable, if one tries to question victimization is the order of the day,” said the employee.

Management officials from Rio Zimbabwe refused to comment on the matter referring all the questions to their board chairperson.