Online Reporter
Zvamaida Murwira
Senior Reporter
THE Insurance and Pension Commission Amendment Bill will bring the National Social Security Authority and all medical aid societies under one regulatory body to ensure transparency and prudent use of public resources, legislators have heard.
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said the two entities will be brought under the regulation of IPEC to ensure proper accountability of pensioners’ and ordinary workers’ contributions.
Prof Ncube said both NSSA and Medical Aid Societies will, however, continue reporting to their different parent Ministries in terms of policy direction.
The Minister said this in the National Assembly, where he was steering debate on the IPEC Amendment Bill.
On Monday, during debate by legislators, it was noted that although the Bill in its current form only sought to bring medical aid societies under the regulation of IPEC, it was plausible that NSSA be brought on board as well, given the need to ensure transparency, accountability and value for money to pensioners.
In response, Prof Ncube acceded to the request, saying, judging from the debate that had ensued, he was duty-bound to make additional amendments to the Bill to include NSSA.
“There is an eloquent contribution in terms of debate and presentation by various speakers. None other than the Government Chief Whip (Cde Pupurai Togarepi). Now it is clear that NSSA should be included in paragraph 4. We will include it,” said Prof Ncube.
“The current situation is like this. We have the Minister of Labour and Social Welfare as the regulator for governance issues, policy direction, protection of our citizens and so forth. On the matter of financial and investment issues, it is the Ministry of Finance, Economic Development and Investment Promotion that must also contribute. From time to time, I do receive correspondence from the Ministry of Labour and Social Welfare to give concurrence to certain decisions or proposals. What is being argued here and I understand the Hon. Members very well, is that this function should be strengthened. So, this is about strengthening the Ministry of Finance, Economic Development and Investment Promotion’s role, which is already enshrined in the NSSA Act, by including IPEC to support the Ministry of Finance, Economic Development and Investment Promotion to regulate those issues that pertain to financial prudence. So, I concur that NSSA should be included along with the medical aid schemes, which are already included for the same reasons.”
He said actuaries will also be regulated by IPEC to strengthen their role.
“There is a view that actuaries should be regulated by IPEC. This again is correct; it should be regulated by IPEC. Otherwise, if they self-regulate and you know what happens when there is self-regulation, often times it means no regulation. I fully support what is already in the Bill that IPEC regulates actuaries,” he said.
Earlier on Parliament’s portfolio committee on Budget, Finance and Investment Promotion, chairman Cde Lincoln Dhliwayo said the majority of people they spoke to during public hearings on the Bill argued that the medical aid society’s financial aspect must be regulated by IPEC.
“This will enhance the insurance regulator, accountability and transparency in this sector. The current status quo results in prejudice to some policyholders. The Ministry of Health does not have the necessary or requisite expertise to provide the accountability and transparency that is required within this sector.”
