THE National Social Security Authority (NSSA) has completed the reconstitution of its board members seconded to chair three of its subsidiaries following a resolution by the State-owned entity to push for the appointment of independent directors.
Last year, NSSA resolved that the chairpersons seconded by the firm had to step down by June 30 to pave way for new independent board chairpersons in line with best practices.
Joseph Kanyekanye stepped down as board chair of Rainbow Tourism Group (RTG) and Capital Bank on Tuesday and was replaced by John Chikura and Onisai Machiridza respectively.
However, he will remain as an ordinary board member of the two companies.
Innocent Chagonda stepped down as First Mutual Holdings board chair last month.
Kanyekanye’s tenure as board chair of Capital was embroiled in controversy after the Allied Timbers chief executive officer was alleged to have taken a $400 000 loan from the bank.
He said on Tuesday that he did not take any money from the bank and did not even have an account with the bank.
An investigation carried out by BDO exonerated Kanyekanye.
James Matiza, NSSA general manager, said yesterday the stepping down of Kanyekanye was not related to investigations at Capital Bank.
“The stepping down of Kanyekanye from the two boards is in compliance with NSSA’s directive to have independent chairpersons in all investments. It has nothing to do with the investigations that were carried out at Capital Bank,” Matiza said.
RTG and Capital Bank were facing serious financial and governance problems, thereby necessitating the need for NSSA to have a hands-on approach at the two companies.
At RTG there was a rift among shareholders over board appointments.
A new board appointed last year has representatives of the two major shareholders — NSSA and Nicholas van Hoogstraten.
NSSA moved into Capital Bank (formerly ReNaissance Merchant Bank) in February 2011 in a $24 million deal after it agreed to rescue the latter as it was under curatorship.
ReNaissance Merchant Bank was put under curatorship in 2010 after a central bank investigation had unearthed serious irregularities where depositors’ funds were allegedly being siphoned by founding directors Patterson Timba and Dunmore Kundishora.