News / National
Court halts US$37 million RioZim payout
18 Sep 2025 at 13:20hrs | 1,059 Views
A US$37 million windfall awarded to more than 200 RioZim employees has been thrown into uncertainty after the High Court ruled that the mining company is protected under corporate rescue proceedings.
Justice Catherine Bachi Mzawazi pulled the case off the roll, citing the legal freeze imposed once a company enters corporate rescue. "The law is indeed an ass, so they say," the judge remarked. "The respondent tactfully sought refuge from the law at the detriment of the employees' rights, thereby throwing their legitimate course of action off course. Arguably, yet another delaying tactic by the respondents which caught the applicants off guard. The law is the law nonetheless. It has to be obeyed unless or until it is repealed or overturned."
The dispute involves Edmore Kasirori and 219 other workers, who won a labour arbitration award against RioZim valued at over US$37 million. They had approached the High Court to register the award for enforcement.
However, a day before the scheduled hearing, RioZim's lawyers argued that proceedings could not proceed because the Zimbabwe Diamond Allied Workers Union had applied in April to place the company under corporate rescue. Justice Mzawazi sided with RioZim, referencing Section 126 of the Insolvency Act, which imposes a legal moratorium on all pending or future litigation once a corporate rescue application is filed.
"All legal proceedings pending, in progress or to be instituted are placed on hold once an application for corporate rescue has been commenced," the judge said.
While acknowledging the frustration of the employees, Mzawazi stressed that their claims had not been lost, only temporarily delayed. She noted that corporate rescue proceedings are intended to allow a financially distressed company to be rehabilitated and must be concluded within three months.
The court ultimately ordered the matter removed from the roll, with each side responsible for its own legal costs.
Justice Catherine Bachi Mzawazi pulled the case off the roll, citing the legal freeze imposed once a company enters corporate rescue. "The law is indeed an ass, so they say," the judge remarked. "The respondent tactfully sought refuge from the law at the detriment of the employees' rights, thereby throwing their legitimate course of action off course. Arguably, yet another delaying tactic by the respondents which caught the applicants off guard. The law is the law nonetheless. It has to be obeyed unless or until it is repealed or overturned."
The dispute involves Edmore Kasirori and 219 other workers, who won a labour arbitration award against RioZim valued at over US$37 million. They had approached the High Court to register the award for enforcement.
"All legal proceedings pending, in progress or to be instituted are placed on hold once an application for corporate rescue has been commenced," the judge said.
While acknowledging the frustration of the employees, Mzawazi stressed that their claims had not been lost, only temporarily delayed. She noted that corporate rescue proceedings are intended to allow a financially distressed company to be rehabilitated and must be concluded within three months.
The court ultimately ordered the matter removed from the roll, with each side responsible for its own legal costs.
Source - Zimlive
