Online Reporter
Herald Reporter
THE National Social Security Authority and medical aid societies will continue to receive policy direction and governance oversight from their parent ministries, but will be regulated by the Insurance and Pension Commission on investment, financial and accountability issues.
The new dual reporting system follows President Mnangagwa’s assent to the Insurance and Pension Commission Amendment Bill, which passed through Parliament last month.
There had been extensive debate over the financial and policy prudence of bringing NSSA and medical aid societies under IPEC, with the entities lobbying for their exclusion, arguing that they should continue reporting to their parent ministries.
NSSA is governed by the Ministry of Public Service, Labour and Social Welfare, while medical aid societies fall under the Ministry of Health and Child Care.
The Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, recently agreed to include NSSA under IPEC’s regulation after initially having only included medical aid societies.
There had been protracted debate over NSSA and medical aid societies, with legislators arguing that many people felt both entities should be regulated by IPEC.
During the Second Reading stage of the Bill in the National Assembly, Prof Ncube conceded to the addition of NSSA as well, after initially including only health insurance funders.
“There has been an eloquent contribution in terms of debate, presentation by various speakers. Now it is clear that NSSA should be included. We will include it,” said Prof Ncube during debate in the National Assembly.
He said as Treasury, they were already involved in the management of NSSA because he frequently signs financial documents that require Treasury’s concurrence from the parent ministry.
“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,” said Prof Ncube.
In presenting Parliament’s Portfolio Committee report on Budget, Finance and Investment Promotion, committee chairperson Cde Lincoln Dhliwayo, said many people felt the financial aspects of medical aid societies should fall under IPEC.
“The majority argued that the medical aid societies’ financial aspect must be regulated by IPEC. This will enhance insurance regulation, accountability and transparency in this sector.
“The current status quo results in prejudice to a number of 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,” said Cde Dhliwayo.
Dzivaresekwa MP, Mr Edwin Mushoriwa, gave the example of the Women’s Bank, whose governance is run by the Ministry of Women Affairs, Community, Small and Medium Enterprise Development, but falls under the purview of the Reserve Bank of Zimbabwe as its regulator.
“Our argument regarding NSSA is not to remove it from the Ministry of Public Service, Labour and Social Welfare. We also want a board like IPEC, with people with the skills and capacity to play a supervisory role in the prudential management of NSSA’s assets,” said Mr Mushoriwa.
Gutu South MP and Zanu PF Chief Whip, Cde Pupurai Togarepi, said there was a need for actuaries who can predict whether the contributions made to NSSA at present will be adequate in future when people retire.
“If they lack this capacity, we must rely on IPEC to perform this vital function on behalf of the Government and the people of Zimbabwe.
“Therefore, I fail to see why there would be resistance, whether from the Ministry of Public Service or any other entity, to appoint someone with the expertise to ensure that NSSA, at the opportune time when I retire, will have my money,” said Cde Togarepi.
He said there should be no resistance to the two entities being regulated by IPEC.
“I do not see why people run away from the Insurance and Pensions Commission, which is an arm of Government. NSSA was established by the same Government.
“Now we have IPEC established by the same Government. We want to protect the interests of our people, and somebody says, ‘No, I can do it without checks and balances. Nobody must observe what I am doing,’” said Cde Togarepi.
