THIRTY RioZim Limited workers have lodged affidavits with the High Court to oppose a corporate rescue application by their labour union, asserting the company has demonstrated a commitment to paying salaries since July this year.
The workers argued that efforts were being made to clear all outstanding salary arrears.
RioZim is facing serious financial and operational challenges across all its operations, and some workers, through the Zimbabwe Diamond & Allied Minerals Workers union (ZDAMWU), had applied to the High Court for the placement of the group under corporate rescue.
RioZim, listed on the Zimbabwe Stock Exchange with interests in gold, coal and diamonds, is the first respondent.
While some employees who have lodged affidavits opposing the corporate rescue belong to the union, they argue that the application “affects their right” and are opposing the petition.
Had the corporate rescue petition not been applied for, “irreparable prejudice” could have been avoided by entering into a settlement with RioZim at a much earlier stage, the workers argue.
According to legal experts, Section 124 (3) of the Insolvency Act provides every affected person the opportunity and right to apply to be heard by submitting their position to the court.
“I aver that since July 2025, I have received my salary from the first respondent timeously and consistently,” one Charles Mtambara, who is among the 30 employees, declared in the affidavit.
“I further aver that the first respondent has, in consultation with the workers committee, implemented a payment plan to pay wage and salary arrears covering the period from 2024 to June 2025.
“I further confirm that the said payment plan is being executed and I have received my arrears in accordance with the said plan.
“I can confirm that I am a member of ZDAMWU and I do not support the corporate rescue petition.”
Prior to the corporate rescue application, more than 2 200 workers at RioZim Limited had gone for five months without pay, prompting ZDAMWU to appeal to the Government for intervention.
In a letter dated April 1, 2025, to the Minister of Public Service, Labour and Social Welfare Edgar Moyo, ZMDAWU general secretary Mr Justice Chinhema said the employees of the once-thriving mining company had been rendered destitute and required assistance from Government social welfare programmes.
“We are writing to urgently bring to your attention the dire situation faced by the employees . . . who have been without a salary for the past five months,” said Mr Chinhema.
“This prolonged period of unpaid wages has created a humanitarian crisis affecting workers and their families, leading to severe financial hardship and emotional distress.”
He claimed that as of 2023, the diversified mining company employed 2 267 people, including 1 347 permanent staff and 920 fixed-term contract workers, making it a significant employer in the country.
Mr Chinhema said workers were struggling to meet basic needs, such as providing meals for families, paying children’s school fees, including examination fees for those taking national exams, and covering rent.
He noted the company had repeatedly extended unpaid leave for workers, offering little hope for a resolution.
RioZim maintains that a successful turnaround is “definitely possible” despite significant financial challenges, asserting that restoring confidence among its stakeholders remains the group’s paramount objective.
It urged ZDAMWU to cease what it terms “hurdles” to its revival, arguing that the union’s court application to place the company under corporate rescue is hindering its recapitalization efforts and delaying a crucial payment plan for employees.
In an interview with this publication in April this year, RioZim chief executive Mr Rajgopal Swami said that the diversified resource firm was “at the cusp of a breakthrough,” just days away from presenting a “secure payment plan along with a substantial down payment” to its employees.
However, the corporate rescue petition reveals RioZim faces severe liquidity issues, with current liabilities exceeding current assets by approximately ZiG1,04 billion and total liabilities surpassing total assets by ZiG149.2 million as of June 30, 2024.
The company is struggling to meet financial obligations, including US$5,5 million and ZiG9 million in regulatory and contractual commitments, prompting the Zimbabwe Revenue Authority to suspect financial impropriety and demand its asset register.
Critical services like electricity have been cut off at some of its operations due to a US$4,7 million debt.
Given the company’s negative equity of ZiG149,2 million and declining performance, including a drop in gold production despite global price increases, the situation is unsustainable and necessitates intervention to prevent collapse.
RioZim also faces significant legal challenges, including criminal charges from the tax authority and the Mining Industry Pension Fund, a US$30 million commercial dispute, and a US$55 million debt to an associate company.
RioZim’s audited financial statements by Forvis Mazars Zimbabwe highlight a material uncertainty regarding the group’s ability to continue as a going concern, a concern echoed by previous auditors, Ernst & Young Chartered Accountants, as far back as December 2021, who also noted significant compliance issues with International Financial Reporting Standards.-herald
