RioZim limited, a listed company which is Largely owned by an Indian company Gem holdings is facing closure amid its fight with RBZ.
The company is demanding RBZ to pay for its gold in forex and has stopped all its operations until RBZ honours its demands. This move has had a huge impact on the lives of thousands of RioZim employees as all its mines stopped operations.
Some of the employees have confirmed that the management would not want the company to close as they are also affected but puts the blame on the Indians namely Manit Shar and Harpal Ranhawa. The company employs more than 2 000 employees and many of these are now on forced leave.
A close source indicated that the mine has gold in its vaults at all the 3 mines but have been instructed not to smelt until RBZ has honored their obligations. The company has the capacity to continue with its operations but the 2 shareholders have instructed closure.
Employees are crying fowl of their salaries as the company only paid 40 % of September salaries before stopping operations and the risk not not being paid the remainder has increased.
Management has hinted all employees that the mine will stop operations for an indefinite period and all employees are not sure of their fate as some of the pits have started flooding.
The company has not been remitting pensions to the Mining Industry Pension Fund and hence all employees pensions are at stake as the company should pay.
There are many fears surrounding the mines’ compounds such as cholera outbreak if Zesa and water authorities stop supplies due to non payment.
There are cases of externalisation of foreign currency by the Indian owners through purchase of HMEs and other equipment. This has had a huge impact on the company’s performance.
