NEWLY appointed Minister of Public Service, Labour and
Social Welfare, Patrick Zhuwao, yesterday reinstated sacked National Social
Security Authority (NSSA) board member, Peter Mutasa, and indicated he would
pursue a broad review of the $1 billion fund’s operations and investments.
Zhuwao’s reinstatement of Mutasa, in one of his first
public acts since his appointment to the ministry last week, presages changes
at NSSA and a review of some key decisions made over the past few years.
Mutasa, the president of the Zimbabwe Congress of Trade
Unions (ZCTU), was dismissed from the NSSA board by former Labour Minister
Prisca Mupfumira in May 2017. Mupfumira accused Mutasa, who represents labour
on the board, of leaking confidential board
discussions and working against the
institution’s interests.
Zhuwao announced Mutasa’s reinstatement in his Tuesday
meeting with the NSSA board led by investment banker Robin Vela.
Although Zhuwao was not available to comment, Vela
confirmed the meeting.
“I was in the NSSA building yesterday with the Minister and
travelled overseas on business (afterwards). I am back next week Tuesday,” Vela
said.
Yesterday, Zhuwao met the ZCTU executive to introduce
himself and “his philosophy” and gave Mutasa his appointment letter.
Mutasa confirmed the development.
“He’s started well in terms of social dialogue,” said
Mutasa. The letter said the appointment would be for the duration of the
current board.
“It is my hope and prayer that this appointment will result
in all litigation that had commenced in this matter being withdrawn forthwith
and being recorded as amicably resolved and settled,” Zhuwao said in his
appointment letter.
Although some sources had indicated that Zhuwao would push
for another audit at NSSA, Mutasa said the matter had not come up in the
meeting with the minister.
“He did not make that indication. He said he wants a NSSA
board that reflects all stakeholders and that upholds good governance,” Mutasa
said.
ZCTU secretary general, Japhet Moyo yesterday said the
union hopes Mutasa’s reinstatement opens a new chapter in relations with
government.
He said the ZCTU had recently written to NSSA general
manager, Elizabeth Chitiga, seeking to understand the rationale behind an
injection of $60 million into a fragile Zimbabwe bank, which they feared would
expose members’ pensions to potential losses.
NSSA has previously sunk funds into struggling banks and
failed to recover its investment. “She wrote back that this was an issue for
the board. We wrote to Vela but he has not yet responded,” said Moyo,
explaining some of the issues the ZCTU would take up with Zhuwao.
Zhuwao replaced Mupfumira in President Robert Mugabe’s
Cabinet reshuffle last week. In a ZANU-PF politburo meeting held on Wednesday
last week, Mugabe is reported to have told Mupfumira that her sacking had
nothing to do with factional infighting ravaging the ruling party, but was
related to alleged infractions under her watch at NSSA.
NSSA, which has been transformed under Vela’s leadership
since his 2015 appointment, is in the process of cleaning up after the old
board.
Upon appointment, Vela’s board dismissed former general
manager, James Matiza and four other executives for alleged maladministration
and corruption. The board also ordered a special audit into NSSA’s investments,
which exposed how the fund lost millions of dollars in questionable investment
decisions, especially involving real estate.
The board has asserted itself on the various companies NSSA
invested in, while moving to consolidate its investments which straddle key
sectors of the economy.
NSSA, whose assets grew 15 percent to $1,052 billion in
2016, reported a 230 percent jump in profit to $106 million in the year.
In 2016, NSSA’s investment income increased by three
percent from $22,8 million in 2015 to $23,5 million.
Vela’s robust approach to NSSA’s investee companies has won
him plaudits and brickbats alike, the latter from entities used to the fund
being a passive shareholder.
Over the past two years, the NSSA board has tussled with
the CBZ Holdings board, fellow shareholders in the ZB Financial Holdings group
and with serial boardroom brawler Nicholas van Hoogstraten over control of
agro-industrial firm CFI Holdings and the Rainbow Tourism Group. Financial gazette
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