Uncategorised

Criminal charges for sacked NSSA bosses…‘Pensioners reel under NSSA rot’

25 Oct, 2015 - 00:10 0 Views
Criminal charges for sacked NSSA bosses…‘Pensioners reel under NSSA rot’

The Sunday Mail

Brian Chitemba and Kuda Bwititi

The five National Social Security Authority executives who were sacked last week for corruption and mismanagement extended dodgy loans to their lovers and awarded themselves salaries of US$40 000-plus, it has been alleged.

Mr Matiza

Mr Matiza

Sources close to the investigations said authorities were lining up criminal charges against former general manager Mr James Matiza, and directors Mr Shadreck Vera (investments), Mr Patrick Mupani (finance), Mr Tendai Mafunda (corporate services) and Mr Bright Chidyagwai (ICT).
Information gathered by this newspaper indicates forensic auditors discovered that Mr Matiza and his team awarded themselves salaries way above the US$6 000 stipulated by Government.
There are also claims that some executives were getting a second salary from NSSA’s investment arm on top of benefits like interest-free housing and car loans, tuition fees for children, and salaries for home security guards and domestic workers.
It is alleged that their lovers, too, unprocedurally accessed loans.
Further, it is said Mr Matiza received US$330 120 for a Borrowdale mansion, and US$232 055,10 to buy a Mercedes-Benz S350.
Auditors gathered that eight top-level managers also received housing loans and US$107 307,54 each to purchase Jeep Grand Cherokees.
Investigators are tying up their probe and could file criminal charges against the five bosses this week.
Public Service, Labour and Social Welfare Minister Prisca Mupfumira told this paper: “We are awaiting the forensic audit report and if crimes were committed, the law will take its course. However, we will not interfere, but allow due process to take place.”
NSSA board chair Mr Robin Vela added, “Part of the bad dealings by the fired managers were of a criminal nature and there is potential of criminal charges. We are looking at pressing such charges in the next coming days.
“We have moved to curb related party transactions which have prejudiced NSSA in the past. To win back the confidence of members and the public, NSSA must hold itself up to the highest standards of corporate governance as outlined in the National Governance Code.
“There is desperate need for realignment and restructuring of the organisation. For us, what’s important is not individuals; it’s all about the organisation. All we want is to give pensioners a living pension.”
Mr Matiza could not be reached for comment.
Lately, Mr Matiza’s management team had come under scrutiny after making some questionable investments.
NSSA spent US$100 million on investments that included shareholdings in broke companies and properties with inflated prices.
US$2,5 million went into the now defunct CFX Bank, while US$12 million was splashed on overpriced starafricacorporation shares, and US$1,5 million on Africom Continental.
At least US$45 million is locked in Interfin Bank, which is now under curatorship after being fingered in the alleged abuse of depositors’ funds.
The bank had non-performing insider loans worth US$60 million.
In addition, NSSA lost US$11,2 million worth of property to local authorities for non-development.
The institution also gave “non-profitable” loans to parastatals, with the National Oil Company of Zimbabwe getting US$3,1 million and Zesa US$9 million. Cottco got US$5 million in November 2009 and another US$3 million in April 2010 at a 124-day tenor and interest rate of 18 percent per annum.
The Grain Marketing Board received US$5 million for a flat two percent facility fee and four percent per annum on a 90-day tenor.
These quesitonable investments are detailed in a forensic audit report compiled by the National Economic Conduct Inspectorate.
On October 1, 2015, Affirmative Action Group vice-president Mr Sam Ncube wrote to Government, questioning a deal in which NSSA’s shareholding in Zimre Holdings was whittled from 40 percent to 19 percent.
This was after the authority failed to follow a rights offer, resulting in Messrs Simon and Hamish Rutland snapping up the shares for just US$15 million.
The letter was addressed to Chief Secretary to the President and Cabinet Dr Misheck Sibanda, and copied to Youth, Indigenisation and Economic Empowerment Minister Patrick Zhuwao, Minister Mupfumira and Mr Vela.
Part of the letter reads: “NSSA should be alive to delivering healthy returns for clients while also contributing to broader economic development and empowerment and the Zimre Holdings target is one such opportunity.
“The takeover of Zimre Holdings by Simon and Hamish Rutland represents a most brazen, unconscionable and unpardonable attack on the policing reflex of local economic empowerment on the high noon.
“The asset is worth a billion for crying out loud. The stated investment valuation and takeover price of a miserly US$15 million, and standing and immediate actions, if left unreversed, our constituency will mobilise to attack the decision and agitate for a public outcry against the action.”
NSSA was established through an Act of Parliament to facilitate a social security scheme for all employees.
Monthly, it collects employee contributions and is supposed to invest this money on the equity and money markets, and real estate.
Mr Matiza could not be reached for comment.

‘Pensioners reel under NSSA rot’

Sunday Mail Reporter
Pensioners have for long borne the brunt of mismanagement at NSSA.
The institution administers two portfolios: the National Pension Scheme and the Accident Prevention and Workers’ Compensation Scheme.
The latest report by the Parliamentary Portfolio Committee on Public Service, Labour and Social Welfare shows NSSA has capacity to increase monthly pension payouts to US$150 per month for the NPS.
However, payouts remain at a miserly US$60, an amount that pensioners who live outside the capital might exhaust on busfare and related travel expenses alone.
Under the WCS, NSSA is supposed to release money if an employee is killed or injured at work.
However, victims of work-related accidents or their immediate families endure delays in accessing financial benefits.
In addition, the invalidity pension can only be accessed when a contributor is totally incapable of working due to disability or illness.
NSSA is also expected to provide housing projects for members and non-members, but most of its housing projects do not benefit low-income members.

Share This:

Survey


We value your opinion! Take a moment to complete our survey

This will close in 20 seconds