POSB Loan Freeze Exposes Deepening Rot at Zimpapers as Workers Sink Into Crisis

by Staff Reporter

POSB Loan Freeze Exposes Deepening Rot at Zimpapers as Workers Sink Into CrisisZimbabwe Newspapers (1980) Ltd has been plunged into fresh controversy after the People’s Own Savings Bank (POSB) Nelson Mandela Branch reportedly halted loan facilities for employees over concerns linked to unremitted payroll deductions, exposing what workers say is a deepening financial and welfare crisis at the State-controlled media giant.

The dramatic freeze has left scores of employees stranded, with many failing to raise school fees when schools opened, and basic upkeep money amid worsening economic hardships and delayed internal financial support systems.

Sources said the situation escalated on Monday last week when POSB reportedly stopped processing loan applications for Zimpapers workers with immediate effect after concerns emerged over outstanding remittances tied to existing employee loans.

Workers who had already completed application forms were allegedly turned away, while those who managed to process applications the previous week escaped the abrupt suspension by a whisker.

The development has triggered outrage inside the company, where employees accuse management of abandoning workers while executives continue to preach corporate governance amid collapsing staff welfare conditions.

The latest revelations come as businessman and philanthropist, Sir Wicknell Chivayo launched a blistering attack on Zimpapers management through his X account, accusing company executives of maintaining a “colonial mentality” by underpaying and ill-treating workers while blocking acts of generosity directed at junior staff.

In a fiery outburst posted on Sunday, Chivayo claimed workers from Capitalk FM had repeatedly contacted him complaining over their deteriorating conditions of service and appealed for intervention.

“Bvisai zvi mitemo zve COLONIALISM and allow the wealthy to spread the love freely wherever they go and as they please,” he wrote, while ridiculing what he described as selective corporate governance standards in a company allegedly failing to pay workers properly and on time.

He further blasted executives for allegedly prioritising rigid boardroom procedures while ordinary workers struggle to survive.

“What upsets me the most is most companies go three or four months without paying workers salaries but superiors raise their big heads and try apply so-called corporate governance rules,” he said.

The POSB loan freeze now appears to have reinforced growing public scrutiny over conditions at the country’s largest integrated media organisation, whose employees have for years complained over low salaries, delayed payments and deteriorating working conditions.

Insiders said some learners linked to Zimpapers employees were reportedly turned away from school over unpaid fees after the company allegedly delayed processing a school fees facility that workers had expected before schools opened.

The company reportedly only disbursed the ZiG school fees allocations on Thursday afternoon after pressure mounted internally.

Last month, Zimpapers was also forced to pay outstanding back pay adjustments after the National Employment Council reportedly raised concerns over underpayments affecting certain grades.

Labour experts warn that failure to remit deductions not only destroys employee creditworthiness but also weakens confidence within the banking sector, potentially locking workers out of future payroll-based facilities.

Founded during the colonial era, Zimpapers remains one of Zimbabwe’s most influential media institutions, controlling newspapers, radio stations and digital platforms.

However, the latest developments have exposed widening cracks within the organisation, with workers now demanding urgent intervention before the crisis spirals further out of control.