A billion dollars lost: Zimbabwe's pensioners dema...

A billion dollars lost: Zimbabwe's pensioners demand justice

Staff Reporter

The Zimbabwean government is facing criticism for its inaction regarding the losses amounting to billions of dollars suffered by pensioners and policy holders during the hyperinflation era of 2006-2009.

Senator Sesel Zvidzai's motion presented in the Senate on Wednesday, has brought attention to the struggles of vulnerable citizens who were deprived of their hard-earned investments by insurance companies and pension schemes.

The Commission of Inquiry established in 2015 found that poor regulatory mechanisms by IPEC were to blame for the losses, and victims were promised compensation. However, nine years later, nothing has been done to address the issue, leaving pensioners in poverty while fund administrators prosper.

"Some statistics indicate that the losses that pensioners and policy holders suffered amount to close to a billion dollars and there is capacity for insurance companies to make sure that the wrongs of the past are corrected for the benefit of the people of Zimbabwe at individual level and our economy at a more collective level. We also noticed that if we move with lethargy Mr President, value is lost.

"This is why we pray that the compensation be hedged against inflation and the vagaries that affect our currency. In other words, I pray that compensation be in United States dollars because that currency is a little bit stubborn to the vagaries of the economy and other emerging challenges so that people can get value of their investments," Zvidzai said.

Senator Mirriam Katumba highlighted that many pensioners, including herself, have not received their due benefits despite saving through pension schemes regulated by IPEC.

She stated that the loss of value due to inflation and currency changes left pensioners in a vulnerable position, with many struggling to survive.

She urged government to take the issue seriously and assist pensioners through the Commission established for this purpose.

"In most cases, when you are saving money through the pension schemes especially through IPEC that represents insurance organisations for pensioners, you would be expecting to survive from that money. If you look at what happened in the past like what other Honourable Members are doing, indeed someone who has saved money and now due to retire, then inflation comes up and the currency changes. You are told that your money lost value. If only this issue about pensioners could be looked into and be rectified so that pensioners can be cushioned. You will be shocked when you go to IPEC and you are told that there are unclaimed pensions, yet there are a lot of people suffering in this country. This must be looked into, especially through the Commission that was alluded to, so that pensioners maybe assisted.

"Most of the people who are going on retirement these days simply die soon after retirement because they will be going into deep trouble. I would like to encourage the government to be seriously involved pertaining to pension issues so that people survive after retirement instead of availing the fund for beneficiaries," she said.