RioZim Meltdown: Workers Push for Rescue Over Miss...

RioZim Meltdown: Workers Push for Rescue Over Missing Millions

Witness Runodada – Zim Now Reporter

The depth of the financial and operational crisis gripping RioZim has come into sharp focus following a court application by the Zimbabwe Diamond and Allied Minerals Workers Union, which is seeking to place the struggling gold miner under corporate rescue.

Once one of Zimbabwe’s most prominent mining companies, RioZim is now burdened by mounting debts, unpaid salaries, and allegations of financial misconduct. In court papers filed by ZIDAMWU, the union paints a grim picture of a company in free fall—crippled by mismanagement, dwindling investor confidence, and the lingering impact of a tragic plane crash that killed its majority shareholder, Harpal Randhawa, in 2023.

According to the union, the company owes its workers over US$5.6 million in unpaid salaries. At its flagship operation, Renco Mine, electricity has been disconnected due to a US$4.7 million unpaid bill to the Zimbabwe Electricity Supply Authority. Compounding RioZim’s woes, ZIMRA is now demanding a register of the company’s movable assets over a US$5.5 million tax debt. ZIMRA has also reportedly requested details of executive vehicles, a move the union says signals growing concern over possible financial impropriety.

“The situation worsened due to insufficient shareholder support and a lack of additional capital injection,” said ZIDAMWU General Secretary Justice Chinhema in the court application. He added that stabilising the company under corporate rescue was essential before any potential sale to new shareholders can proceed. The union estimates that at least US$200 million will be required to settle debts and fund a turnaround strategy.

ZIDAMWU is also calling for a full audit of RioZim’s finances and assets, in line with Section 142 of the Insolvency Act.

The union claims that some company transactions raise red flags. In one instance, RioZim allegedly sold the One-Step Mine (also known as Cricket Mine) for US$6 million, yet only declared US$1 million in proceeds. The sale, the union claims, lacked the necessary regulatory approvals and may have deprived the government of significant capital gains tax.

Allegations have also emerged of questionable decisions by management, including the offsite processing of gold carbon and inflated spending on maintenance projects such as boiler repairs. Workers are demanding a thorough investigation into these transactions and the broader governance of the company.