Golden Sibanda Senior Business Reporter
COMPANIES sub-contracted to build houses under CABS’ Budiriro housing project owe $4,5 million in unremitted pension fund contributions after failing to meet workers’ and statutory obligations. The claim was made by Zimbabwe Construction and Allied Trades Workers Union in correspondence to the Ministry of Local Government, Public Works and National Housing.
“We wish to make reference to the Budiriro Housing project being funded by Old Mutual Properties. Most companies who are engaged in this project have failed to meet their obligations in terms of payment of wages and statutory payments such as pensions.”
Old Mutual Zimbabwe is behind the $62 million high density housing project in Harare’s Budiriro Suburb. The project is meant to provide low cost housing to first time buyers.
ZCAW also said companies sub-contracted at Ngezi Mine, Unki and road construction projects were also guilty of failing to meet their workers and statutory obligations.
“The challenges are that almost three quarters of the indigenous contractors are failing to meet their obligations in terms of payment of wages, pension contributions and other statutory payments (such as) to National Social Security Authority,” ZCAW said.
In the letter lodged with the ministry late last year, the union said this had resulted in its members failing to access their pension funds after termination of employment, said ZCAW.
Local Government, Public Works and National Housing secretary Retired Colonel J Mhakayakora, in response, said the ministry would look into the issues raised to avoid recurrence.
“The ministry has noted with great concern the failure by local contractors to meet their obligations in terms of payments of wages, pension contributions and other statutory payments,” he said.
Rtd Colonel Mhakayakora said communication would be made to the Construction Industry Federation of Zimbabwe and Zimbabwe Building Contractors Association on the issues.
ZCAW said the contractors alleged that most of their contracts were Government funded projects and that the Government was failing to pay the contractors for work done.
The contractors further sensationally claimed that “this non-payment by Government as alleged has resulted in these employers failing to pay wages and other statutory benefits.”
The union called on the ministry to intervene on formulating policies that will accommodate involvement of trade union and the industry’s national employment council.
ZCAW also proposed that it be involved in all projects processes with respect to the tendering process, work in progress and final stage of handover to avoid similar problems.