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Mashudu Netsianda Senior Court Reporter
THE High Court has ordered Hwange Colliery Company Limited (HCCL) to pay the Zimbabwe Manpower Development Fund (Zimdef) more than $600,000 in unpaid levies. Bulawayo High Court judge Justice Nicholas Mathonsi’s ruling follows a court application by the Minister of Higher and Tertiary Education, Science and Technology Development, Professor Jonathan Moyo, citing HCCL as the defendant. HCCL failed to remit $644,695,71 in levies from its assessed wage bill accrued over a two-year period. The levies were not been remitted between January 2014 and October 2015.

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 which is payable to Zimdef. “It is ordered that judgment be and is hereby against the defendant for payment of $644,695,71 being the balance of levy due for the period from January 2014 and October 2015,” ruled Justice Mathonsi.

The judge also ordered the coal mining firm to pay the legal costs.

Prof Moyo, in his summons filed through lawyers, Dube-Banda, Nzarayapenga and Partners, said the coal mining giant continuously neglected or refused to settle the debt despite demand. HCCL did not challenge the application resulting in a default judgment in favour of the Minister.

According to court papers, the Minister delegated Zimdef levy inspectors to assess HCCL wage bills, payrolls and other financial statements for that period during which a sum of $644,695,71 was arrived at as the balance of levy due.

The debt ridden coal mining company is reeling under serious financial crisis resulting in some of its equipment being sold off to settle long standing debts. Recently, more than 2,500 HCCL workers filed an urgent chamber application at the High Court for the company to be placed under judicial management.

The workers have not been paid their salaries for more than 30 months.