Zimbabwe moots commission on ‘lost’ pensioners’ money

Zimbabwe’s pensioners and insurance policyholders who lost the value of their money when the country converted to the multi-currency regime are set to get relief as government plans to set up a commission to establish the basis of compensation.

VICTORIA MTOMBA
BUSINESS REPORTER

The country adopted the multicurrency system in 2009 to replace the local currency that had been rendered useless by hyperinflation.

Finance and Economic Development minister Patrick Chinamasa said the commission comes after an outcry as most pensioners and insurance policyholders alleged that they had lost value to their pensions after the conversion to the multi-currency system.

“I have discussed with the industry to set up a commission of inquiry with the wide support of stakeholders so that this matter is put to rest. I have proposed draft terms of reference. We are going to have another meeting with industry perhaps in three or four weeks’ time,” Chinamasa said.

“We all agree that something was lost, but to what extent that is basically what the commission will make an inquiry on.”
He said the members of the commission have not been selected, but will not involve people who have vested interest in the sector, but people who would be independent of the sector.

Chinamasa said there was a consultant company appointed in the past whose results have been disputed as the methods used prejudiced the players or the pensioners.

However, Chinamasa said he has not read the results of that firm as he did not want to dwell in the past.

Since the country adopted the multi-currency, pensioners have been wallowing in poverty with a number receiving a paltry $25 as pension per month.

The commission will investigate the financial soundness of the Zimbabwean insurance and pensions industry before, during and after conversion from the Zimbabwean dollar to United States dollar.