Public Hearings on the ZISCO

PARLIAMENTARY COMMITTEES SERIES 10/2018

[20th March 2017]

Public Hearings on the ZISCO (Debt Assumption) Bill

Monday 26th to Thursday 29th March

The National Assembly’s Portfolio Committee on Finance and Economic Development will be holding Public Hearings on the Zimbabwe Iron and Steel Company Debt Assumption Bill from 26th  to 29th March 2018 as follows:

About the Bill

The full text of this Ministry of Finance and Economic Development  Bill is available on the Veritas website at this link.

The Bill’s objective is for the State to assume the debts of the Zimbabwe Iron and Steel Company [ZISCO] subject to validation and reconciliation processes carried out by the Debt Management Office in the Ministry. This will clean the balance sheet of the company thereby paving way for investors to start with a clean slate.

The debts concerned are those accumulated before 1st January 2017 listed in the Schedule to the Bill.  They total jus under US$ 495 million, made up of debts to external lenders [just under US$ 212 million]; debts to external suppliers [just over US$ 6 million]; debts to domestic lenders [just under US$ 58 million]; and debts to domestic creditors [over US$ 219 million].  The debts to domestic creditors include: over US$ 15 million owed to ZIMRA for PAYE; over US$ 94 million classified as “payroll liabilities”; over US$ 39 million classified as “Pension”; and substantial amounts to the Municipality of Redcliff and the City of Kwekwe.

The Bill is structured in the same way as the Reserve Bank of Zimbabwe (Debt Assumption) Act [link].  The Minister of Finance and Economic Development will, on behalf of the State, assume responsibility for the discharge of the ZISCO debts that are “validated and reconciled” by the Ministry’s Debt Management Office in accordance with clause 5 of the Bill.  Government-backed debt instruments may be used to discharge the debts.

Attendance at the Hearings

Parliament invites the public, interested groups and organizations to attend these hearings and submit their views on the Bill and any recommendations for changes.  Contributions made at the hearings will be considered by the Portfolio Committee and will be part of the Committee’s report that will be presented to the National Assembly when the Bill comes up for debate.  So this is a good opportunity to ensure that MPs know what the general public and stakeholders think about the Bill.

As is customary at such hearings, persons wearing military uniforms, badges of rank, flags and or political party regalia will not be allowed access to the hearings.

Written submissions

Written submissions and correspondence are welcome and should be addressed to:

The Clerk of Parliament

Attention: Portfolio Committee on Finance and Economic Development

P.O. Box CY 298

Causeway, Harare

Submissions can also be made by email through email address clerk@parlzim.gov.zw organdiwaj@parlzim.gov.zw or manhivis@parlzim.gov.zw

[Note: Those who are not able to attend the public hearings – and this includes all Zimbabweans in the Diaspora – are encouraged to send in their written submissions, as explained above.]

Queries

For any further information or clarifications please call on the telephone numbers below and speak to the officers indicated.

Telephone: (04) 700181–8 or 252936–50

Shepherd Manhivi (Committee Clerk): Ext. 2057

Catherine Mpofu Muvhami (Public Relations Officer) Ext 2007

Fax: (04) 252935  

Veritas makes every effort to ensure reliable information, but cannot take legal responsibility for information supplied