Former Finance and Economic Development Minister, Tendai Biti Tuesday 27 September 2022 claimed that “greedy” insurance companies like Old Mutual and First Mutual are yet to pay back the US$5,86 billion they took from Zimbabweans over ten years ago.
Speaking in Parliament Biti said the companies took advantage of inflation and weak regulatory framework by the Insurance Pension Commission of Zimbabwe (IPEC).
The law expert cited the Justice Smith Commission of Inquiry of March 2007 which recommended that insurance companies needed to compensate Zimbabweans for the US$5.86 billion which they had illegally converted for their benefit. He said:
My point of national interest relates to pensions. As you know, in March of 2007, the Justice Smith Commission of Inquiry into conversion of people’s pension funds presented its report.
That report made several recommendations after finding that Zimbabweans had lost pensions to the total value of USD5.86 billion as a result of a weak regulatory framework by IPEC, the Insurance Pension Commission of Zimbabwe, the scandalous and greedy behaviour of insurance houses and terrible macro-economic environment, including inflation that had risen to 500 billion percent.
So effectively, Justice Smith recommended that there be compensation for pensioners, teachers, headmasters and workers who had worked from 1980 and served through their pensions but their pensions were wiped out.
He said the recommendations have not yet been implemented.
Biti added that there is also a second group of pensioners who saved their money from 2009 when the economy had dollarized, and paid their pensions in USD, but “greedy pension houses like Old Mutual and First Mutual are now paying those pensioners in paltry ZW$.”
The Harare East legislator urged Finance Minister Mthuli Ncube to come up with a law that puts into effect the Justice Smith Commission of Inquiry recommendations.
Biti said he was one of the affected contributors. He took out an Old Mutual policy in 1994 with an assured sum of Z$50 million (about US$20 000 the exchange rate of the time), but to date, he has never received a cent.
Dream on Mr Biti, it will never happen. And you know that.
Agreed, we ALL lost a huge amount in pensions & savings so, THE WAY TO GO. We can only hope that something will come of it BUT, knowing the GREED/CORRUPTION in Zim, I doubt it.
I do not usually agree with Biti but he is right we need to force these blood sucking parasites to pay what they owe.
So Noel, since you agree with him on this story maybe you will agree with him on all his stories. he is always right.
Don’t be a silly sausage i would never sell my country of origin down the drain for 30 pieces of silver. He wants to give the keys of Zimbabwe to the UK and to the US. That won’t be happening on my watch. My uncle from Mabvuku fought in the war to make sure that the most beautiful country on the planet earth is owned and controlled by Zimbabweans.
All investments invested in ZWD were decimated in 2008 due to hyperinflation. We all know the culprit is Gono and Mugabe whom you adore and respected but did not have the guts to tell when you were his Minister of Finance.