Business Correspondent
CHINHOYI – Jiangxi Risheng Private Limited, a Chinese-owned mining company operating Detroop Mine in Chikuti, Mashonaland West, has been fined US$200 and ordered to settle nearly US$97,000 in unpaid contributions after under-declaring its workforce to the National Social Security Authority (NSSA).
The Chinhoyi Magistrate Court convicted the firm this week for violating the NSSA Act (Chapter 17:04) by declaring only 61 employees instead of its actual workforce of 273.
The discrepancy, uncovered in a joint investigation by the Zimbabwe Anti-Corruption Commission (ZACC) and NSSA, revealed the company employed 190 permanent staff and 83 contract workers but failed to remit mandatory social security and workers’ compensation funds since 2022.
Prosecutors stated that the under-declaration prejudiced the state of US$96,919.42 in unpaid contributions to the Pension and Other Benefits Scheme and the Accident Prevention and Workers Compensation Scheme.
The court ordered the company to settle the debt within 30 days, in addition to the US$200 fine.
Representing Jiangxi Risheng, company official Meng Quangyuan pleaded guilty to the charges. Magistrate Tendai Mahwe emphasized the severity of the offense, stating,
“Employers must uphold their legal obligations to protect workers’ welfare and contribute to national social security systems.”
Authorities Crack Down on Non-Compliance
ZACC confirmed the investigation began after a tip-off, underscoring its commitment to tackling corporate fraud.
“This case sends a clear message: evasion of statutory obligations will not be tolerated,” said a ZACC spokesperson.
NSSA reiterated calls for transparency, urging all employers to declare full workforces to avoid penalties.
Detroop Mine, which focuses on gold and nickel extraction, has not publicly commented on the ruling.
The case highlights ongoing challenges in regulating foreign-owned mining firms, which have faced repeated accusations of labor and tax violations in Zimbabwe.
As pressure mounts for stricter enforcement, NSSA warns that audits targeting under-declaration and non-remittance will intensify across sectors.
“Compliance is non-negotiable,” an NSSA official stated.
“These funds safeguard workers’ futures, and we will pursue all defaulters.”
The ruling has sparked mixed reactions, with labor activists applauding the court’s decision while calling for harsher penalties.
“A US$200 fine is a slap on the wrist for a multinational firm,” said union representative Tawanda Marimo.
“Stronger deterrents are needed to protect workers and state revenue.”
Jiangxi Risheng has 30 days to settle the outstanding amount or face further legal action.
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