No.5
ZL\1B.\BWE IRo:-> A:-.1) STEEL CoMP.\KY (DEBT
Asst'MP!'Ios)
"reconcile", in relation to reconciling a claim, means to establish the amount
of such claim by comparing and hannonising the amounts reflected in
the records of ZISCO and in those of the creditor;
"settle", in relation to the settling of debts by the State, includes to liquidate
such debts in accordance with section -+(3);
"valid:'1te ", in relation to validating a claim, means to establish the ex.istence
of such claim;
"ZISCO" means the Zimbabwe Iron and Steel Company
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Extent of debt
For the purposes of this Act-
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(a)
the debts of ZISCO consist of the liabilities incurred by /JSC<) before
1st January, 2017, that are itemised in the Schedule;
(b)
the liabilities itemised in the Schedule shalL if the claims relating to them
are ,·alidated and reconciled in accordance ''ith section 5, be regarded as
prior debts of ZISCO even if ZISCO had no power or capacity to incur
the liability.
(c)
a liability arising out of a Govemment guarantee or undertaking shall be
regarded as having been incurred when the guarantee or undertaking \\'as
given.
Assumption of obligations by the State
( 1) Subject to the validation and reconciliation of the relevant claim-: under section
.~vfinister shall, on behalf of the State, assume responsibility for the discharge
5, the
of-
(a)
the outstanding obligations of ZISCO with respect to its prior debts; and
(b)
such other obligations as he or she may consider ex.pedient with respect
to the prior debts of ZISCO;
and may give written authority to any person to sign and execute as his or her
n·presentative any undertaking, agreement or document pursuant to any such assumption
of responsibility.
(2) Th(~ terms and conditions under which the l\linister assumes responsibility
in terms of subsection ( 1) for the discharge of any obligation with respect to the prior
debts of ZISCO shall he fixed by the !\Iinister.
(3) The prior debts may be liquidated through the issuance of Govemmentbacked debt instruments.
(-J.) ~o action or proceeding shall be commenced or continued against ZISCO
in respect of a prior debt assumed by the rv1inister on behalf of the State, or any otlwr
obligation or claim in connection therewith or arising there from.
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Proof of claims arising from prior debts and notification of validated
and reconciled claims
(1) No claim arising from a prior debt shall be assumed by the State and settled
under section -t. unless it is validated and reconciled in accordance with this section.
(2) All claims arising from prior debts shall be validated and reconciled b) the
Debt Management Office, for which purpose the Oflice may demand from the creditor
concerned the following, as may be appropriate168
2018