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Harare stops pension payouts to non-residents
Zim Online
July 29, 2004

http://www.zimonline.co.za/downloads.asp?ID=110

PRETORIA - The Zimbabwe government has stopped paying pensions to retirees living outside the country forcing thousands of them to lead destitute lives. According to John Redsern, honorary secretary of the Flame Lily Foundation of South Africa, which is assisting elderly Zimbabweans in the country, most pensioners have not received their pension payouts for more than a year.

Redsern told Zim Online that the Zimbabwe government had cited persistent foreign currency shortages as the reason for not honouring its obligations to the pensioners. "Most Zimbabwean pensioners live in South Africa. They made pension contributions during their lives but they are not getting anything and most of them are leading destitute lives," said Redsern.

He said it was because of their plight that Flame Lily started a project called the Zimbabwe Pensioners' Association (ZPA) two weeks ago. The project is meant to raise funds to help suffering pensioners.

ZPA's other objective is to pressure Harare to meet its obligations to the retirees. Redsern said ZPA had made several representations over the issue of non-remitted pension payouts to Labour and Social Welfare Minister Paul Mangwana but had not had any success. The Zimbabwe government last responded to queries from the pensioners in August 2003, according to Redsern.

Mangwana could not be reached for comment. The acute foreign currency shortage gripping the country since the International Monetary Fund cut balance-of-payments support to Harare has also led to Zimbabwe¹s defaulting on debt repayments to several foreign institutions.

Redsern said, "Last year we even suggested that the South African government loan some money to Zimbabwe so that it could cover the pensions but they told us it was impossible.(South African) President Mbeki referred us to the Ministry of Finance but we did not get much help from there and we are due to meet President Mbeki soon over the same issue."

He added that the ZPA was planning to carry out fund raising activities in Britain, USA, Canada, Australia and New Zealand where substantial numbers of Zimbabwean retirees live. The oganisation also hoped to open offices in those countries.

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