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Fidelis Munyoro Chief Court Reporter—
five National Social Security Authority executives who were fired for alleged corruption and poor corporate governance are challenging the retrenchment process, which the authority has instituted against them. 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) were fired last week.
NSSA board member Mr Hashmon Matemera, the former Group managing director of BancABC Zimbabwe, will act as interim general manager until a substantive general manager has been identified. The five are also accused of pampering their lovers with dubious loans, while they awarded themselves salaries of more than $40 000 each.
The quintet has since enlisted the services of Matsikidze and Mucheche Legal Practitioners to challenge the expulsion and the retrenchment process. The move to challenge the expulsion comes as a reaction to NSSA board chairman Mr Robin Vela, who wrote to the five advising them of the authority’s intention to retrench them.
In his letter copied to all the five, Mr Vela said the new board, which was appointed three months ago, had reviewed management and operational structures. “Taking into account the results of the review process, and mainly in order to fulfil a new strategic thrust and to cut expenditure, the board has decided to retrench you,” said Mr Vela in the letter dated October 19 2015.
“The authority, therefore, wishes to discuss and hopefully agree with you a retrenchment package on the terms and conditions set out by the retrenchment laws namely; section 12C(2) of the Labour Act (Chapter 28:01). “Issues to do with your loans and other obligations to NSSA and any entitlements as you may have against NSSA will be addressed with you during the retrenchment discussions.”
NSSA has appointed Messrs Selby Hwacha and G. Chingoma of Dube, Manikai and Hwacha law firm to handle the retrenchment process. But Mr Caleb Mucheche, who is appearing for the five, wrote to NSSA advising them that he was instructed to challenge the justification for the retrenchment process. “Our clients further instruct us that the aforesaid retrenchment process is tantamount to unfair termination of their contracts of employment,” said Mr Mucheche.
He said the retrenchment process was a violation of his clients’ fundamental labour rights embedded in terms of section 65 of the Constitution of Zimbabwe. Given the tripartite composition of NSSA, which comprises Government, labour and business, Mr Mucheche said, his clients reasonably expected the employer to respect the labour laws of the country in the principle of fairness before embarking on a retrenchment exercise.
“For starters, the employer unilaterally imposed retrenchment upon our clients without first exploring the legal route of unretrenchment measure as provided for in terms of section 12D of the Labour Act (Chapter 28:01),” he said.
“In the same vein, our clients further instruct that the employer violated their legitimated legal right to participate in any decision affecting their interest at the workplace as provided for in terms of section 2A(1)(c) of the Labour Act in a manner in which it has arbitrarily imposed the retrenchment.”
The sacking of the five came in the wake of recent criticism of the authority over its perceived failure to invest pensioners’ money in areas with significant or meaningful socio-economic value on the lives of beneficiaries.
The authority’s management has often been vilified for their choice of investments, including concentration in the equities market and financial institutions where it recently lost about $20 million after dabbling in the affairs of cash strapped Capital Bank.
With over $1 billion worth of investments, the statutory pension fund is the biggest institutional investor in Zimbabwe but Government recently revealed plans to review its investment policy. Investigations by our sister paper The Sunday Mail indicates that forensic auditors discovered that Mr Matiza and his team awarded themselves salaries way above the $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, procedurally accessed loans. Further, it is said Mr Matiza received $330 120 for a Borrowdale mansion and $232 055.10 to buy a Mercedes-Benz S350. Auditors also gathered that eight top-level managers also received housing loans and $107 307.54 each to purchase Jeep Grand Cherokees.
Investigators are finalising their probe and could file criminal charges against the five bosses this week. NSSA is constituted and established in terms of the National Social Security Authority Act of 1989. It is the statutory corporate body tasked by the Government to provide social security. It administers two schemes: Pension and Other Benefits Scheme and Accident Prevention and Workers’ Compensation Scheme.
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