IPEC sets deadline for dividend pay-out

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By Talkmore Gandiwa

HARARE – The Insurance and Pension Commission (IPEC) has set 10 July 2022 as the deadline for eligible pensioners to withdraw their US$100 from the first tranche of the Kuvimba House dividend. Kuvimba mining house paid US$ 5.2 million in dividends with 5% paid to the IPEC commission as the government holds 21.5% of the equity.

In a statement, IPEC said the compensation of the first group of about 4 000 eligible pensioners will be closing 10 July 2022. This comes after the commission has published a list of eligible pensioners during the beginning of the year.

“The Insurance and Pension Commission advises pensioners eligible to receive US$100 from the first tranche of the Kuvimba Mining House dividend, who are yet to withdraw their money to do so by 10 July 2022,” said IPEC.

The 5% proceeds from the dividend pay-out was worth US$ 400 thousand which the investment have been earmarked for compensation in respect of legacy pensions and the 2008 compensation.

Furthermore, IPEC said after 10 July 2022, available resources will be availed to the next group of pensioners and the remaining batches of pensioners shall be compensated using future dividends

In the 2021 National Budget Statement, Finance and Economic Development Minister Professor Mthuli Ncube set aside resources then equivalent to US$75 million, to be applied to the compensation of pensioners for the loss of value.

These resources were later availed as US$75 million worth of shareholding in Kuvimba Mining House as compensation to the pensions industry as Government moved to acknowledge that the 2019 currency reforms had unintended consequences on pensioners within the private occupational pension schemes.

Kuvimba owns key mines such as Bindura Nickel Corporation, the country nickel producer, Freda Rebecca, Zimbabwe biggest gold miner Shamva Mine, as well as an interest in the great dyke investments potentially the country’s largest platinum operation.

In 2020, Kuvimba started running state-owned mines Jena, Elvington and Sandawana, after ZMDC ceded control. Kuvimba has also took control of mothballed tiger reef mine and other mines in Midlands. After the government announce that 65% of the company was now in the hands of the local interest with the remaining 35% held by private investors.

In the prior year Kuvimba CEO David Brown said the shareholders must bear in mind that future dividends will always have to be managed as a balancing act between reinvestment into the business in order for it to grow and rewards

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