NSSA to defend $100m Metbank suit

Africa Moyo Deputy News Editor
THE National Social Security Authority (NSSA) will defend the $100 million lawsuit recently filed by Metbank.

Metbank sued NSSA and BDO Zimbabwe Chartered Accountants in respect of a forensic audit that singled out the bank as one of the major beneficiaries of questionable investment decisions by the authority.

The report covered the period January 1, 2015 to February 28, 2018.

NSSA acting general manager Mr David Makwara told The Herald that Metbank had not officially served NSSA with their summons.

“NSSA was not served with the summons, but thankfully we were alerted of their existence via social media and we instructed our lawyers to attend to the matter, who proceeded to conduct a search at the High Court.

“This search yielded the relevant results and showed that NSSA was three days shy of the likelihood of having a default judgment issued against the authority.

“We can confirm that to date we have not been formally served with the summons, but we have, however, instructed our lawyers to approach the High Court and enter an Appearance to Defend to avoid a default judgment against the authority,” he said.

Mr Makwara said Metbank had misdirected itself by suing NSSA for defamation over a report that was carried out by BDO on behalf of the Auditor-General Mrs Mildred Chiri and the Minister of Public Service, Labour and Social Welfare.

“The summons establish absolutely no cause of action against NSSA,” said Mr Makwara.

“It’s a clear case of exception and we will be calling costs at the highest scale.

“Our position is that following the recovery of the TBs (Treasury Bills) in full, plus the 5 percent penalty fees on the TBs and the full legal fees, there is no basis to this suit.”

Mr Makwara said NSSA was not the instigator of the report, but is “instead the subject therein and has consequently been the recipient of the backlash from the report”.

He added that NSSA management  had considered the report and would be guided by the constructive criticism  as the authority was now focused on restoring and repositioning NSSA as a market leader in provision of social security services.