Parliament demands NSSA reforms

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A PARLIAMENTARY portfolio committee has accused the State-owned National Social Security Authority (NSSA) for misdirecting monthly pension contributions amid plans to immediately review the law governing the authority.

By Victoria Mtomba
Business Reporter

Parliamentary Portfolio Committee on Finance and Economic Planning chairperson David Chapfika this week said the Ministry of Labour, Public Service and Social Welfare should immediately review the Social Security Act.

This comes amid outcry that NSSA has failed to cushion pensioners from the harsh economic environment despite having investments on the Zimbabwe Stock Exchange (ZSE) and property market.

“The committee is deeply concerned by the very slow progress regarding the review of the National Social Security Act at a time NSSA continues to receive and misdirect monthly contributions from the workers.

“It is our considered view that NSSA investments should be broad-based and should benefit the shareholders who are in effect the workers that make monthly contributions,” Chapfika said.

Last year, the Confederation of Zimbabwe Industries queried the decision by the State-owned compulsory pension scheme authority to invest $30 million in Capital Bank at a time business require fresh capital.

Capital Bank, formerly an investment bank, has since been downgraded to a micro-bank.

NSSA general manager James Matiza last year told NewsDay that the company invested in Capital Bank as it was the only way that it could tap into First Mutual Holdings (FMH), which is a stock exchange-listed company performing well in the insurance sector.

Matiza said shares for FMH could not be easily found on the market.

NSSA subsidiaries include FMH, in which it has a 51% stake, while the company has an 86% stake in Capital Bank.

The authority has interests in several firms listed on the ZSE.

NSSA also administers the pension and other benefits scheme and the accident prevention and the workers’ compensation schemes.

Matiza said the pension fund pays $60 per month as a minimum to its pensioners while the maximum is $1 447, although in between, some people get $200, $600 and others $700 depending on one’s contributions.

NSSA’s balance sheet as at 2012 had grown to $706 million from $592 million in 2011.

Before that, the authority’s assets stood at $456 million in 2010.

7 COMMENTS

  1. Tinoda kuziva zviri kuititka ku NSSA nemari dzedu vanochinja motor maexecutive iwaya vachitengeserana. South Africa has pension for all retirees and vasingashande, vakura including madisability grants. yedu murikungo nyudza chete. Hightime we started benefiitting from mari dzedu.
    Tiri ku retire with nothing to show for all our years tichifondoka. Tofa here tichidya nhoko dzezvironda? Cursed generation…..which worships material things and money. Hanzi nhamo yemumwe hairegererwe sadza…nxa.

  2. thanx NewsDay for informing us about how well NSSA is perfoming.i understand it is the best perfoming parastatal and one of the very few parastatals which submitted a financial report last year.they could do better of course .zvakaipa ngatishowore zvakanaka tichirumbidzawo, based on the FACTS given.my fear is ZANU ichapinza its sticky fingers into NSSA coffers to pay civil servants salary and destroy it like it has been culpable for the demise of other parastatals

  3. What I find baffling is the fact that NSSA, badly run as it is can still afford to pay pensioners a minimum of 60 dollars when private insurance and pension funds are not paying ANTHING at all. Add to this there is a funny body called IPEC whose brief nonody knows . Not even they at IPEC know what they are supposed to do. Its like the Consumer Council which has made regurgitating useless statistics its only reason of existence when they should be telling us why boarding schools and schools in general are charging these crazy levies which have had the net effect of sending a million children into the street..Shouldnt they provide a model of how much it costs schools to run these schools inclusive of how much it costs to feed these children while they are there and so on. Getting salary schedules of bosses to the cabinet secretary will help somewhat in arresting the rot of leakages at the top but WE also need to be told WHY we need some of these leech parastatals whose brief appears to be to suck us dry. Disband useless parastatals..PLEASE.

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