LEGISLATORS have demanded answers from Treasury regarding delays in compensating pensioners who lost their retirement savings as a result of the 2009 currency change.
This comes after Finance deputy minister David Mnangagwa recently announced a US$175 million commitment towards addressing the issue.
However, lawmakers expressed concern over slow progress in disbursing the funds, citing the 2015 Smith Commission of Inquiry (SCI) report which confirmed significant losses and recommended compensation.
Mbizo MP Colbarn Madzivanyika questioned a potential conflict of interest within the Insurance and Pensions Commission (Ipec) board, where some members also lead pension funds, saying this may be hindering progress.
“My question is on the case with reference to the SCI, which was set up in 2015. The fundamental finding from the inquiry was that it is government and Ipec which failed to prepare an equitable and fair process of conversion from Zimdollars to United States dollars,” Madzivanyika said.
“Is it not a problem of the Ipec board, which has got its members of the board who are also leaders of pension funds? Is that conflict of interest not the one that is causing these unnecessary delays?”
Dzivarasekwa MP Edwin Mushoriwa pointed to a 90-day deadline set by Ipec in 2023 for insurance companies to address the issue.
“I want the minister to assist us given that Ipec came up with Statutory Instrument 162 of 2023 and gave the insurance companies 90 days, which was supposed to expire in December 2023.
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“We are now in July and we have heard the minister saying government made a commitment of about US$175 million. Can the minister explain to us and if he is unable to do so we would then want him to bring, maybe a ministerial statement in respect of the compensation framework,” Mushoriwa said.
“Remember this is a 2009 issue and we are now in 2024. A number of people have actually died along the process. We need to find out which insurance companies have got hazy data and which insurance companies are prepared.”
Mnangagwa acknowledged the concerns and agreed to prepare a detailed statement outlining the submissions made by lawmakers.
Pensioners, who had worked for several years, had their pension values reduced to measly amounts, some as low as US$0,80.
They have not been compensated for the losses incurred on their pensions during the inflationary period of 2008 and 2009.
