News / National
Minister sues Hwange Colliery
23 Jan 2018 at 05:48hrs | Views
THE Minister of Higher and Tertiary Education, Science and Technology Development Professor Amon Murwira has dragged Hwange Colliery Company Limited (HCCL) to court for failing to remit more than $157 000 in Zimbabwe Manpower Development Fund (Zimdef) levies from its wage bill.
In terms of section 3 of the Manpower Planning and Development Act, the Minister is empowered to impose a levy on every employer under Statutory Instrument (SI) 74 OF 1999. The levy is payable to Zimdef.
Prof Murwira, who is the plaintiff in the matter, has filed summons at the Bulawayo High Court citing HCCL as the defendant.
The Minister is demanding a total of $157 254 from the colliery company for levies which have not been remitted from February 2017 to September 2017.
Prof Murwira, in his summons filed through lawyers, Dube-Banda, Nzarayapenga and Partners, said the coal mining giant has continuously neglected or refused to settle the debt despite demand.
"From February 2017 to September 2017 the defendant did not remit its full levy due on monthly basis as required by the regulations," said the Minister.
According to the court papers, the Minister delegated Zimdef levy inspectors who assessed HCCL wages bill, payrolls and other financial statements for that period during which a total amount of $157 254 was arrived at as the balance of levy due and surcharges.
"The defendant, despite assessment by levy inspectors, still has the duty to calculate, declare and pay its levy obligation," said the Minister's lawyers.
In terms of the Manpower Planning and Development Act as read in conjunction with section 3 of the Manpower Planning and Development (Levy) Notice SI 74 of 1999, every employer is obliged to pay a levy of one percent of its total assessed wage bill and other leviable benefits on employers and directors on or before the first day of each month.
Section 5 of the Manpower Planning and Development (Levy) Notice SI 74/1999 empowers Zimdef to impose a 10 percent surcharge on overdue levy.
Prof Murwira is demanding that HCCL pay the cost of suit at attorney-client scale.
HCCL is yet to respond.
The Ministry has in the past taken several companies and local authorities to court for defaulting in paying Zimdef levies. Some of the organisations which have been sued for varying amounts include Gwanda Municipality and Hwange Local Board.
In terms of section 3 of the Manpower Planning and Development Act, the Minister is empowered to impose a levy on every employer under Statutory Instrument (SI) 74 OF 1999. The levy is payable to Zimdef.
Prof Murwira, who is the plaintiff in the matter, has filed summons at the Bulawayo High Court citing HCCL as the defendant.
The Minister is demanding a total of $157 254 from the colliery company for levies which have not been remitted from February 2017 to September 2017.
Prof Murwira, in his summons filed through lawyers, Dube-Banda, Nzarayapenga and Partners, said the coal mining giant has continuously neglected or refused to settle the debt despite demand.
"From February 2017 to September 2017 the defendant did not remit its full levy due on monthly basis as required by the regulations," said the Minister.
"The defendant, despite assessment by levy inspectors, still has the duty to calculate, declare and pay its levy obligation," said the Minister's lawyers.
In terms of the Manpower Planning and Development Act as read in conjunction with section 3 of the Manpower Planning and Development (Levy) Notice SI 74 of 1999, every employer is obliged to pay a levy of one percent of its total assessed wage bill and other leviable benefits on employers and directors on or before the first day of each month.
Section 5 of the Manpower Planning and Development (Levy) Notice SI 74/1999 empowers Zimdef to impose a 10 percent surcharge on overdue levy.
Prof Murwira is demanding that HCCL pay the cost of suit at attorney-client scale.
HCCL is yet to respond.
The Ministry has in the past taken several companies and local authorities to court for defaulting in paying Zimdef levies. Some of the organisations which have been sued for varying amounts include Gwanda Municipality and Hwange Local Board.
Source - chronicle
