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Lloyd Gumbo Senior Reporter
The National Social Security Authority has invested millions of United States dollars in non-performing firms, putting pensions at risk.
The authority lent money to banks that have either closed or were under curatorship. While NSSA has recovered money from other banks through selling their properties, it cannot do so with Interfin bank that is under curatorship, MPs heard yesterday.
Officials from NSSA, led by general manager Mr James Matiza and acting Secretary for Public Service, Labour and Social Welfare Mr Sydney Mhishi, said the authority invested millions in banks and other companies.
They said this when they appeared before the Parliamentary Portfolio Committee on Public Service, Labour and Social Welfare chaired by Gutu East MP Cde Berita Chikwama (Zanu-PF).
The investments cut across the financial, health, real estate and tourism sectors and in 64 Zimbabwe Stock Exchange counters. Some of the companies the authority gave loans are Rainbow Tourism Group, where it has 36 percent shareholding. RTG got US$14,3 million to settle a debt and buy furniture for Beitbridge Hotel.
Mr Matiza said the authority had title deeds as security for the loan.
NSSA also gave US$5,3 million to starafricacorporation, in which it has 24 percent shareholding, to buy a sugar processing machine. The authority gave US$2,1 million to Masvingo City Council for infrastructure development in a suburb where NSSA wants to build 680 houses. Mr Matiza said NSSA’s primary role was not investments but managing benefits payments. Tsholotsho North MP Mrs Roselene Sipepa Nkomo (MDC-T) queried how NSSA would handle evaporation of pensioners’ money. Zanu-PF legislators, Cdes Dexter Nduna (Chegutu West) and Joseph Mapiki (Shamva South) asked if there was no default in loan repayments by banks.
“It’s true that we give money to banks and some banks close down. But like I said, when we give money to a bank, we get security. In the case of Royal Bank, we gave them money but when they got broke, we had security of the building. So there was a liquidator whom we told we were owed, and we recovered the money.
“But there are situations like Interfin. When a bank is put under curatorship, it’s protected by the law that you cannot sell the security (to recover invested money) because the law says it should be given a chance to resuscitate.
“The curatorship is expiring in December so after that if authorities are satisfied that it can’t work, and then it will be put under liquidation. In that case, we will then produce our security to the liquidator so that we can recover our money,” said Mr Matiza.
He said Metropolitan Bank owed them about US$25 million that was recovered through selling the institution’s buildings. Mr Matiza said the NSSA board insisted the authority buy 20,75 percent shares of Joina City instead of upgrading Ximex Mall, which it wholly owns. MPs raised concern with investment in construction of a Bulawayo medical centre, Ekusileni, which has been idle since 2004. Mr Matiza said Ekusileni was closed by the Health Ministry because of use of second-hand equipment. He said Dr Doubt Dube, head of the Zimbabwe Health Care Trust, had on several occasions promised to address Government’s concerns so that it would be opened.
Mr Matiza said the trust owed NSSA about US$4,2 million in rental arrears since their condemned equipment was still in Ekusileni Medical Centre.
Mr Matiza said the Public Service and Health ministries were seized with the matter.
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