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Martin Kadzere
Forensic audit into various transactions and investments by state – owned pension fund – the National Social Security Authority – has been concluded with insiders hinting it exposes “unholy and dirty” deals linking senior executives, politicians and their business partners that connived to plunder workers’ life savings among other shenanigans, Business Weekly has learnt.
The audit followed concerns over questionable transactions and investments by NSSA as well as issues related to corporate governance. NSSA, with assets worth over $1,1 billion (to be revalued) and a major investor in key sectors of the economy, has been heavily criticised for wasting retirement savings through investing in areas that have not yielded positive returns.
Minister of Public Service, Labour and Social Welfare Sekai Nzenza, confirmed the completion of the audit report, but was noncommittal in sharing its highlights as the NSSA board was still deliberating on the matter.
Some of the NSSA investments include the construction of a US$40 million hotel in Beitbridge and a series of bailouts of local banks some, which have since gone under.
It has been previously reported how NSSA spent US$100 million on investments that included buying shareholdings in broke firms as well as immovable properties at inflated prices.
“The final forensic audit report has been completed timeously; just three weeks after the board was appointed,” Nzenza said.
The new board is chaired by Cuthbert Chidoori.
“The chairman will discuss with the board and seek guidance from the management in order to come up with resolutions pertaining to the forensic report.”
Nzenza had previously indicated there could be a massive restructuring at NSSA but would depend on recommendations from the board. She said there was need for wholesale review of the authority’s corporate governance and management structures to align them with the Public Entities Corporate Governance Act.
“While there are brilliant and outstanding skills within NSSA, there are some critical issues relating to good governance,” Nzenza said. “It is my objective to ensure that NSSA becomes an example of best practice and good governance by demonstrating professionalism, transparency and accountability to meet its commitment to pensioners.
Zimbabwean pensioners are among the worst paid retirees in the region, earning as little as 32 RTGS dollars per month, which is equivalent to US$13 at the prevailing official exchange rate. The Government has since indicated it is considering increasing the pay-outs to cushion pensioners from rising cost of living.
The last increase was in October 2017. Zimbabwe is currently facing economic challenges among them a crippling foreign currency shortage and rising inflation, which has eroded household spending power. Inflation hit 56 percent in January 2018–the highest in 10 years and this has badly eroded household incomes.
Meanwhile, Nzenza said the Government was finalising the meeting with partners to the Tripartite Negotiation Forum with social partners that seeks to tackle the country’s economic woes.
The TNF provides a platform for dialogue between government, employers and employees.
“Pursuant to that, the minister’s intervention has been two-fold,” Nzenza said. “Efforts have been exerted by the Ministry in the finalisation of the long standing TNF Bill.
“As it stands, the Bill is under consultation through the Parliamentary Legal Committee to enable the extensive input by the stakeholders before being tabled in parliament. The Bill, once finalised, will provide a legal framework for dialogue.”
Some economic analysts have been calling for the revival of the TNF, saying it is important to help arrest some of the economic challenges the country is going through and eliminate the mistrust, particularly between the Government and business.
For instance, the Government has on several occasions accused the business for unjustified price increases while on the other hand, business has blamed the policy makers for failing to provide sound policies to make their businesses thrive.
Bongani Ndlovu