NSSA must learn from past mistakes

ln dramatic fashion, the National Social Security Authority (NSSA) recently announced the unexpected departure of its general manager Mr James Matiza, directors Mr Shadreck Vera (Investments), Mr Patrick Mupani (finance), Mr Tendai Mafunda (corporate services) and Mr Bright Chidyagwai (ICT). It seems that the new board that was recently appointed by Government has set out on a new trajectory. But some say it is a mammoth task, considering the alleged rot that is plaguing the parastatal. Most pensioners, including their dependants who bank on NSSA for sustenance, feel short-changed as the monthly payouts are considered measly. The Sunday Mail Business Reporter Africa Moyo (AM) last week sought NSSA board chairman, Mr Robin Vela’s (RV) thoughts to understand where the Authority is headed.

AM: What is NSSA’s new trajectory?
RV: It is critical that NSSA begins to generate an acceptable and market-related level of return from its investments.
It is also critical that the actions of the board in words and deeds are worthy of starting the process of regaining the public’s trust in the authority. NSSA should be an important catalyst for economic growth and also be able to deliver a living pension and safety net to its pensioners.
AM: Your investments made numerous losses in the past, what kind of investments should the market expect NSSA to venture into going forward which might bring significant returns?
RV: We are guided by national strategic goals but what will be critical is that we will not lose capital invested and more so, we will demand a market-related investment income return on all investments made. The board must face up to the reality that the deficiencies of the authority’s past and learn from the same. As board chairman, I believe the Investment committee’s competence should be beyond question – public perception wise but also in actual reality.
There are highly qualified Zimbabweans all over the world who have reached out to me in recent days wanting to make a contribution to what they see as national service. The board is currently consulting on the proposed appointment of an Independent Investment Expert to the Investment Committee whose vote will be recorded and disclosed on each investment proposal but whose credentials are also beyond reproach. We have identified several individuals who are Zimbabwean, professionally qualified, globally experienced and have dealt at the highest level in the global investment space tasked with managing funds several multiples that of the size of NSSA’s funds. We will be looking to announce appointments soon.
AM: There has been a major staff restructuring exercise, what do you have in mind, may be in terms of deliverables?
RV: The board is undertaking a “roots and branches” re-examination of the operating structure of NSSA so that there is complete transparency, individual competence and no centralised power but rather silos of excellence within it. From this, the benefits of service delivery, utilisation of technology platforms to cut costs, efficient collections, operational efficiency and investment activity improvement can be derived.
We have already stated that NSSA needed to refocus the business so it was necessary to undertake the restructuring exercise so as to align our internal structures to the current business strategy.
In terms of deliverables, these fall into two broad categories – short-term (the quick wins) and the long term deliverables. We envisage improved service delivery, greater accountability to stakeholders through timely and transparent reporting, equitable treatment for our stakeholders, a humane pension – that enables the pensioner to live a decent life, employment of robust cost management strategies, greater efficiency and improved organisational agility.
AM: Some pensioners are living in abject poverty and are regretting having contributed to pension schemes. What chances are there for an immediate review of pensions?
RV: The board is alive to the current plight of the pensioners and have gone on record to say it would like to be judged by the change in living standards to pensioners, we are able to deliver through our actions. It is our top priority to do right by our pensioners and to deliver a living pension. Having said that, it would be irresponsible of the board to immediately increase the pension amount without fully comprehending and reconfirming the status of the funds and its ultimate solvency.
We are still seeking assurance on the valuation of the funds and putting in place measures (such as seeking to reduce operational costs) which will place us in a position to advise the Minister of the ability of the fund to adjust its payment amount without a further burden on the contributors (employees or employers).
It goes without saying that we would like to be in this position as soon as responsibly practicable.
AM: People see NSSA as a source of cheap funds, should it be like that, and how are you going to balance availing cheap funds and propping up the economy?
RV: NSSA’s funds are contributors’ and pensioners’ funds. It is not and should not be seen as free or cheap money. NSSA has a fiduciary duty to act in the best interests of its pensioners but also understand it does not operate in a vacuum. As per our new thrust, we will favour investments that safeguard capital while delivering an appropriate return in the form of investment income.
AM: Is there anything in particular that you would like to tell pensioners and other stakeholders?
RV: The board recognises the important role it must play in leading change and directing corporate Zimbabwe, as does the likes of the Public Investment Corporation in South Africa. To be able to lead and direct its investee companies, NSSA must first introspect and fix itself.
There is no stone being left unturned in this effort. Indeed, it is uncomfortable for many incumbents but from our perspective, the discomfort of a few is a small price to pay to get NSSA back on track for the benefit of the millions of stakeholders (past, current and future) that do or will depend on it. We have also already started to flag to boards and management teams of investee companies that it can and will no longer be business as usual in entities that NSSA is invested in.