‘Greedy’ insurance companies like Old Mutual and First Mutual are yet to pay back US$5,86 billion they took from Zimbabweans due to weak regulatory framework by the Insurance Pension Commission of Zimbabwe (IPEC) and inflation over ten years ago.
This was revealed by Former Finance Minister Tendai Biti in Parliament on Tuesday.
He cited the Justice Smith Commission of Inquiry of March 2007 which recommended that insurance companies needed to compensate Zimbabweans for the US$5,86 billion which they had illegally converted for their benefit.
“My point of national interest relates to pensions. As you know, in March of 2007, the Justice Smith Commission of Inquiry into conversion of people’s pension funds presented its report.
“That report made several recommendations after finding that Zimbabweans had lost pensions to the total value of USD5.86 billion as a result of a weak regulatory framework by IPEC, the Insurance Pension Commission of Zimbabwe, the scandalous and greedy behaviour of insurance houses and terrible macro-economic environment, including inflation that had risen to 500 billion percent,” Biti said.
“So effectively, Justice Smith recommended that there be compensation for pensioners, teachers, headmasters and workers who had worked from 1980 and served through their pensions but their pensions were wiped out.
“Six/Seven years later, those recommendations have not been put into practice. There is also a second group of pensioners. These are people who saved their money from 2009 when the economy had dollarized, pay their pensions in USD, but suddenly after February of 2019, with the enactment of Statutory Instrument 33 of 2019, greedy pension houses like Old Mutual and First Mutual are now paying those pensioners in paltry ZW$.”
The Harare East legislator urged Finance Minister Mthuli Ncube to come up with a law that puts into effect the Justice Smith Commission of Inquiry recommendations.
“So, I make the point that the Minister of Finance and Economic Development must, as a matter of urgency, come up with a law that puts into effect the Justice Smith Commission of Inquiry recommendations and secondly, that same law must deal with the pensioners who have lost their USD savings, those who started making pension contributions from 2009 in USD including Hon. Members of this august House,” he added.
In response, Speaker of Parliament Jacob Mudenda advised Biti to bring the issue to Parliament for MPs to debate.
“Thank you Hon. Biti. You have raised a very important issue but I encourage you to bring a motion to this House concerning that issue so that Hon. Members will debate and adopt the motion,” Mudenda said.
This is how Capitalism exploits Africans, especially in countries with poor governance policies and despotic leadership in all of the fascet’s of the word💔🤬
This gy deserves more respect.
Imagine the money they collected since 1980 from workers and boom they made it varnish with no trace when they went on pension
manyasa rand mari dzavo please
Shame on you mbavha vamwe Dai vakatenga
Simba G Manjese
Boti is the real deal
Boti
Biti
They are not paying even pensions, they only pay a select few
How i wish this happens in South Africa,
Not forgetting the building societies that ripped us off and changed their names
Toda mari yedu
True that, super thieves.
Champion Biti say it loud our fathers worked very hard for our country but the rewards were utilized by these people who don’t have the worker at their heart. What they know is oppression of those putting food on their tables
They built properties with our pension but now saying your money was in Bearers
ZANU yakauraya nyika nekuba uye kurega nyika ichibatwa chibharo nemacompanies. Huori everywhere whithout care or fear. Nxaaa
The greatest finance minister of all time in Zim who knows that Citizens deserves the best.
thanks to Biti for being reasonable enough and speaking on behalf of the poor, Old Mutual must be made to pay back the monies that it owes to the poor Zimbabweans
Sure we lost a good deal of our savings. We are really heartbroken
Kkkkkkk those insurance companies are owned by Western World who are your sponsors may some of the money you are always recieving is part of that
Times are tough but at least we have Hon Tendai Biti and Hon Temba Mliswa
Usabatanidza Biti nemarara iwewe
Yes mukomana akaona apa ndiko kuinda kuSchool manje uku kwete kuchikoro ramba wakadzvanya toda cash yedu MaUSA not papers
Ndrikutodawo mari kuneimwe
So elected finance Ministers from Zanu zvese izvi vanga vasingazvioni🤔🤔🤔🤔Party ye Zanu inenge yakazara madofo zvekusvitsa nyika kuita mamvemve but vachitambira Mari every month
Insurance industry defrauded many people in the whole world
Please take my Acc so long🙈
10 years ago aaaaa 😂😂 Mkuru akamboita Munisita wezvemari kauyu Mari yaingo torwa aripo 😂
Exactly and long overdue
Zanu pf is more cruel than the 2. Wadyajena stole 5 m alone
Honorable Biti always on point
One munhu anogona kumanager hupfumi hwenyika
Ndakanyudzwa
True ,Fml used to corrnive with companies submitting money to them and pay out their pensions with no interest accumulated on it .employees suffered and they are still suffering due to these activities .
people who contributed to pension and retired around that time lost their savings and they have nothing…its painful when you meet actual people who were affected and hear them speak…
Prosper Singe
Never ever will we trust an insurance company again, got totally ripped off
Our Government is the one promoting this