Home » Governance » Government to Probe Pension Loses At Dollarisation

THE government on Wednesday said it would set up an independent commission of inquiry to investigate losses incurred by pensioners and policyholders during the conversion from the Zimbabwe dollar to the current multi-currency system five years ago.

Collapse of the local currency due to hyperinflation, which reached 500 billion percent in December 2008 according to IMF data, left thousands without life insurance and savings when government adopted a basket of foreign currencies to stem the tide in February 2009.

Addressing journalists after meeting with stakeholders from the insurance sector including the regulator – Insurance and Pensions Commission, the Zimbabwe Congress of Trade Unions, fund managers, and consumer representatives, finance minister Patrick Chinamasa said the commission would look into allegations raised by pensioners and policyholders about losses incurred during the conversion.

He said the findings of a consultancy firm appointed in 2012 to investigate the matter were disputed, hence the appointment of an independent commission.

“The problem remains unresolved until now. I normally spend sleepless nights when I have issues which remain unresolved. So I want to see this matter put to rest,” he said.

Chinamasa said members of the commission were yet to be identified and recommendations would be made to President Robert Mugabe to make the appointments.

The minister said he had proposed draft terms of reference which the industry would give an input on.

“The ministry has no position in this regard, we are neutral. We are interested in restoring confidence in the sector,” he said.

He said the commission would deal with different cases to establish the degree of loss and make recommendations.

“Any losses which were due to exogenous factors, you can’t make the industry responsible. But we just want to see fairness,” he said, adding that in cases where industry used premiums to invest in fixed assets, then there was need to compensate but where value was lost then no compensation would be made.

“To that extent, adjustments will be called for obviously depending on a company to company basis.”

Source : New Zimbabwe