IPEC recovers over ZiG121m in pension arrears

Sunday Mail Reporter

THE Insurance and Pensions Commission (IPEC) has launched a robust enforcement operation against companies failing to remit pension contributions, issuing garnishee orders against 13 entities in a bid to recover millions in arreaars.

The crackdown, conducted under Section 16(8) of the Pensions and Provident Funds Act [Chapter 24:32], has seen the industry regulator target a combined US$1,8 million and more than ZiG189 million in unpaid contributions across multiple pension funds.

As of October 28, 2026, IPEC had recovered US$570 759.88 against the foreign currency debt, while a cumulative ZiG121,7 million had been recouped from the local currency obligation.

The affected pension funds include the Construction Industry Pension Fund (CIPF), the Zimbabwe Electricity Industry Pension Fund (ZEIPF), the Local Authorities Pension Fund (LAPF), the Clothing Industry Pension Fund, and the Communications and Allied Industries Pension Fund (CAIPF).

The most substantial recovery to date involves ZESA Enterprises (Private) Limited (ZENT), which has fully settled its obligations of US$215 759.88 and ZiG9 330 856.21.

The recovery followed a directive by IPEC Commissioner Grace Muradzikwa to Stanbic Bank to garnish ZENT’s account after the pensions watchdog established that the company, a sponsoring employer whose employees are members of ZEIPF, had defaulted on its statutory obligation to remit contributions for over three months.

In a letter dated October 21, 2026, addressed to Stanbic Bank, Commissioner Muradzikwa invoked Section 16(8) of the Act, which mandates that where a participating employer fails to comply with a directive from the commission, the commissioner shall instruct the employer’s bank to remit outstanding contributions to the fund.

“Accordingly, and in order to safeguard the interests and the rights of the pension fund members and their dependents, the commission hereby directs Stanbic Bank to garnish ZENT’s bank account . . . for amounts of ZiG9 330 856.21 and US$215 759.88 in favour of ZEIPF,” read part of the directive.

The amounts were subsequently recovered in full.

Meanwhile, the Zimbabwe Power Company (ZPC) has made a partial payment, with Stanbic Bank recovering US$300 000 of the US$949 100.23 owed, as well as ZiG10 million out of the ZiG34 751 582.76 debt.

**Construction sector **under the spotlight

A wave of garnishee orders was also issued on October 21, 2026 against construction companies in favour of CIPF.

Efforts are ongoing to recover outstanding amounts from several firms, including Fossil Contracting (ZiG12 890 191.82), Broadhaven Construction (over US$114 352.47 and ZiG1,28 million).

Other companies facing enforcement orders include Tacna Engineering and Construction (over US$76 000), and Gateway Construction, which has paid ZiG500 000 and is now left with a balance of ZiG1 110 763.

Heritage Construction has settled US$55 000 of the over US$81 000 in arrears.

Local authorities have recorded mixed outcomes in their compliance efforts.

The Harare City Council has managed to settle ZiG40 million of its debt, with ZiG39 774 926 still outstanding, while Chitungwiza Municipality has cleared its ZiG28 million arrears.

In the communications sector, ZiG4 million was recovered from TelOne, representing half of the amount owed to CAIPF.

IPEC, a statutory board established under the Insurance and Pensions Commission Act [Chapter 24:21], has warned that failure to comply with statutory directives or any action intended to circumvent the garnishee orders constitutes an offence in terms of Section 55(4) of the Pensions and Provident Funds Act.

All directives take immediate effect and remain standing instructions and first-priority charges against the defaulting employers’ bank accounts until the full amounts have been recovered.

Banks are required to provide written confirmation of compliance within five working days of receipt, detailing the amount recovered, specific remittance dates and proof of payment.

The regulator’s enforcement actions are designed to protect the interests and rights of pension fund members and their dependents while ensuring compliance with statutory pension contribution obligations across all sectors of the economy.

Source: IPEC recovers over ZiG121m in pension arrears – herald

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