The move will help those employed by NewZim Steel, formerly known as Zimbabwe Iron and Steel Company, who have not been receiving salaries for the past seven months. This is due to the deadlock on the deal between the government and Essar Africa Holdings that saw the Indian conglomerate acquiring a majority stake at ZISCO.
Essar had previously promised to inject fresh capital of about $750 million into the firm which employs several hundred residents from the area. However, there have been sticking points regarding the implementation of the deal, with the major impasse centering on the reluctance by the
Mines ministry headed by Obert Mpofu to release iron ore claims formerly owned by ZISCO to NewZim Steel.
In a letter penned by Redcliff Town Clerk, Elizabeth Gwatipedza, residents and firms owing the local authority $100 or less will get a 50 percent discount, while those with unpaid bills stretching to $500 will get 40 percent discount.
She added that the move was meant to cushion the blow to residents and firms that are finding it hard to survive.
Post published in: News