Since the country dumped the worthless Zimbabwe dollar for multiple currencies, companies are operating below 45 percent capacity and failing to access loans to resuscitate operations.
Uncertainty has, in turn, made investors hesitant to invest due unstable political climate and controversial indigenisation laws.
NSSA general manager James Matiza said the authority is owed more than $14 million by employers who are defaulting payment of pension funds.
A total of 7,757 companies have been found guilty in Bulawayo, Midlands and Manicaland. We have completed the first phase of an ongoing exercise to identify defaulting companies. We will penalise them and charge 50 percent of their arrears, he said. We are also considering pressing charges against defaulters to recover the debts.
Economist James Gary said the current prevailing economic environment was not conducive for business growth with companies struggling survive due lack of foreign direct investment and non availability of lines of credit. Government should provide a conducive environment for business to thrive and make profits. Without that they cannot remit pensions in time because they have other pressing issues to attend to, Gary said. NSSA is under fire from labour unions for paying pensioners funds described as peanuts.
Post published in: News