eBusiness Weekly
Business Writer
A MAJOR shake-up is looming at the National Social Security Authority (NSSA) amid reports Government is considering a wholesale review of the Authority’s corporate governance and management structures to align them with the Public Entities Corporate Governance Act.
NSSA, with assets worth $1,1 billion, has been heavily criticised for abusing workers’ retirement savings through investing in areas that have not yielded positive dividends.
Now the Ministry of Public Service, Labour and Social Welfare, is planning to institute a good corporate governance and management culture at the Authority in line with the Public Entities Corporate Governance Act, Minister Sekai Nzenza has revealed.
She hinted there could be a restructuring, depending on recommendations from the new board.
Minister Nzenza has already identified the majority of new board members who have since been cleared after a vetting process, and now awaits a representative from the Zimbabwe Congress of Trade Union.
Initially, the ZCTU, Zimbabwe’s largest labour body, had nominated its president Peter Mutasa, but the minister requested at least three candidates who will also go through a vetting process.
Mutasa, who was arrested last week for subversion after the ZCTU called for a national stayaway which later degenerated into an orgy of looting and destruction of both private and public property, sat on NSSA’s previous board.
Board to implement radical reforms
Minister Nzenza said the new board was expected to implement sweeping reforms at the authority.
In October last year, the Minister dissolved the board-led by then acting chairperson Daphne Tomana, who had taken over the hot seat following the sacking of Robin Vela.
Hashmon Matemera, Sijabiliso Biyam, Nester Mukwena, Eria Phiri, Jemima Mateko and Richard Gundai were the other board members. Their term had expired in June.
Apart from putting in place proper good corporate governance mechanisms, Government is also looking at introducing a performance management system, said Minister Nzenza.
In addition, a review of NSSA’s investment portfolio would be part of the new board’s mandate.
“The board will be responsible for creating the right committees and with the advice from the board; yes there may be a restructuring,” Nzenza told Business Weekly this week.
“As the new Minister, I would insist on establishment of effective corporate governance mechanisms, which should be in line with the Public Entities Corporate Governance Act.
“We have had some problems before and these problems lead back to the issues to do with decision making matrix (which is not clear). Because of lack of clarity . . . there is lack of accountability and it is difficult to hold anyone accountable.”
N S S A investment policy under the spotlight
Minister Nzenza said she was also keen to see a robust review of NSSA’s investment policy.
“We need investment that have good returns. The board will do the review of all investment portfolio across the board. There have been bad investment perhaps due to lack of proper due diligence and I would like to avoid such things in future,” said Minister Nzenza.
“We want to have the best social protection mechanisms for our people.
“Apart from putting in a proper good corporate governance mechanisms, we must have the performance management system.”
N S S A investment portfolio
NSSA has investments in banking, insurance, hospitality, money market and property sectors. It is one of the biggest investors on the Zimbabwe Stock Exchange and has assisted Government at some point.
Some of the projects that NSSA has been blamed for undertaking include the construction of $44 million Beitbridge Hotel. The 136-roomed facility was closed in May 2016 after Rainbow Tourism Group, which was leasing the property pulled out citing low business.
Former chairman Vela indicated the authority might never fully recover the investment it made into Beitbridge Hotel, saying it was bad investment decision that could have been avoided.
The authority is now pursuing alternative use for the property to recover some value. NSSA also invested in failed financial institutions such as the defunct Capital Bank.
Labour bodies have raised concerns over bad investment decision at NSSA given the fact that the pensioners are wallowing in poverty as they are getting little benefits which deprive them from accessing.
