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NewsDay

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‘Essar deal will not fail’

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Ziscosteel workers have gone for seven months without salaries and wages as the government continues to shift goal posts on the $750 million Essar Africa takeover deal.

KWEKWE — Ziscosteel workers have gone for seven months without salaries and wages as the government continues to shift goal posts on the $750 million Essar Africa takeover deal.

Report by Blessed Mhlanga

They have been urged to hold on.

Prime Minister Morgan Tsvangirai told hundreds of workers last Friday that the Essar deal would not be allowed to fail.

“That deal will not fail. That will not happen. My team is putting all efforts to ensure that we revive Ziscosteel and turn it into a billion-dollar investment project that not only has the capacity to transform Redcliff, but Zimbabwe,” he said.

Indian ambassador to Zimbabwe, Jeiteendra Tripathi, a fortnight ago said several prospective Indian investors had now resolved to hold on to their investments until the dust over the Essar deal had settled.

“There are some problems. There are some vested interests here in Zimbabwe who don’t want this deal to go through,” he told NewsDay in an exclusive interview.

“I don’t know why they are projecting things in a very negative manner.”

Tsvangirai said the Mines ministy had since issued a letter facilitating the release of major iron ore reserves to Essar Africa Holdings bringing the deal closer to finality.

He said those intending to get bribes before the deal sailed through could be blocking it.

“The deal is failing because I am sure there are some people who wanted to be given money so that they would release the mines,” Tsvangirai said.

“Because these corrupt elements were not paid, they want to scuttle the deal. There is, however, some movement because I have been told the Ministry of Mines has since written a letter to release some of the mines to Essar.”

“I tell you, if the deal does not happen during the life of the inclusive government, it will happen during my time.”

The future of Ziscosteel workers has remained bleak despite the coming in of Essar. The PM said he would meet top management to try and persuade them to pay out salaries ahead of the festive season.