By Marshall Bwanya
Harare — Over 400 former Mbada Diamonds workers are still fighting for their terminal benefits and unpaid salaries following the closure of the company close to a decade ago.
Mbada was among several diamond miners in the Marange area in Manicaland province that were forced to stop operations following claims of massive leakages and the government’s decision to collapse them under the Zimbabwe Consolidated Diamond Companies (ZCDC).
Mbada Diamonds was in a partnership with the Zimbabwe Mining Development Corporation (ZMDC), a publicly owned entity.
In February 2016, then Mines minister, Walter Chidakwa, held a meeting with mining companies operating under special grants in Chiadzwa, and unilaterally cancelled all operations.
This led to Mbada’s abrupt closure and further complicated matters for its employees.
From 2013 to 2016, the company laid off more than 400 workers, yet failed to compensate them.
According to records, former employees are owed between US$5,000 and US$30,000 each, depending on grade and tenure.
Mbada Diamonds acknowledged in official correspondence that it owed its former workforce at least US$636,125.01 in unpaid salaries and terminal benefits, but that is widely considered a conservative figure.
In 2018, the Insurance and Pensions Commission (IPEC) approved the liquidation of the Mbada Diamonds Pension Fund, two years after the company had ceased operations.
The fund’s administrator, Marsh, appointed David Mureriwa of MAOS as the liquidator. Affected employees were instructed to submit claims through the liquidator.
However, due to significant arrears in pension contributions and lack of available funds, many workers have been told to expect only partial payouts, or none at all.
Despite mounting court rulings in favour of former employees, the enforcement of those decisions has proven ineffective.
Mbada, though once a dominant force in Zimbabwe’s diamond mining sector, now has no cash flow, no active operations, and no visible assets to enforce against.
A glimmer of hope appeared in 2020, when the Supreme Court of Zimbabwe ruled that Marange Resources must pay renewal fees to allow Grandwell Holdings, Mbada’s Mauritius-registered principal, to resume mining activities, in line with a 2009 special grant agreement.
Yet, despite this legal victory, there has been no resumption of activity, nor has any relief been extended to the workers.
Former employees say they have been left to fend for themselves, with no financial or moral support from either the company or the government.
Many have struggled to cover basic living expenses, pay school fees, or seek medical care.
The government’s 2016 “nationalization” of diamond operations through the creation of ZCDC has been another major barrier to compensation.
Since assuming control, the government has distanced itself from Mbada’s liabilities, claiming that these are private matters, despite its former direct involvement.
ZCDC is currently giving excuses that it wants all the pending cases involving Mbada Diamonds to be cleared before they can compensate the aggrieved former employees.
On the pending cases involving Mbanda Diamonds, ZCDC and the aggrieved workers, the Supreme Court is currently waiting on a proposal on settlement from the parties.
Source – NewsHub
