The Movement for Democratic Change (MDC) has learnt with
utter shock and dismay the contents of the recently released Auditor’s report
which reveals that through the then Minister of Public Service Labor and Social
Welfare and her associates, the organization suffered a potential financial
prejudice amounting to $167,713, 756.00 and actual financial prejudice of
$7,536,375.00.
Indicated in the same report is the criminal conduct of
NSSA employees working in cahoots with the Minister where the former awarded
the MetBank facilities that were not merited leading to a huge exposure of
$62,003,96.00. The corruption within NSSA might look like mere figures, but
quite sadly they have far reaching socio-economic implications on the
livelihoods of pensioners. At the center of the effects of the NSSA scandal is
the failure by the institution to honor its obligations on pensions. After
decades of hard work and deductions, retirees become paupers due to the avarice
of corrupt politicians who seek to profit at the expense of the impoverished
workers.
The criminals must not go unpunished but beyond the
punitive measures that we expect to be taken against those who have been caught
with their fingers in the pie, the MDC proposes systemic and structural reforms
of the public pension fund. We acknowledge that pushing for NSSA reform in the
absence of political stability and under the current illegitimate
administration is a tall order.
We also acknowledge that progress on pension fund
governance builds on the level of governance in the whole economy which is
currently in tatters. Nonetheless, guided by our conscience and core values of
justice and fairness, we are taking it upon ourselves to stand in defense of
the vulnerable pensioner; hence in the short term, the MDC through its
parliamentary deployees will push for a Pension Reform Act that will necessitate the creation of a
Pension Reform Taskforce which seeks to:
1.Guarantee the provision of adequate and viable retirement
income to all NSSA contributors
2.Protect the vulnerable against livelihoods risk due to
corruption and undue political interference
3.Improve the hygiene and governance practice of the
organization especially ensuring that the responsible Minister and Treasury
must not have disproportionate power over the Pension Fund.
4.To ensure that there must be a clear separation between
the investment arm of NSSA and the wing that deals with the administration of
pensions.
5. Internal and external governance mechanisms and
investment controls must be put in place in order to isolate pension reserve
funds effectively from undue political influence.
The Act must empower the Pension Reform Taskforce to embark
on a robust reform of NSSA exercise that will cure the current problems such as
the fact that the pension fund is not shielded from political pressure,
investment policies do not respect guidance regarding risk exposure and
accountability to members is weak. The mechanism for minimizing corruption and
fraudulent activities within NSAA must focus on:
1. Governance practices of the organization to ensure
transparency, establish systems for mitigating conflict of interest and
accountability of each function and roles. Members must have representation
within the governance structure with strong mandate
2. Accountability must see the effective benchmarking of
operations and performance of the organization. The civil servants have the
right to know.
3.Fund Management, this must be in the custody of competent
and qualified professionals with their only objective being to serve
The MDC also proffers the following suggestions which will
help combat corruption in a future centralized retirement fund.
(i) Introduction of criminal sanctions for all corruption
related offenses especially for public officials
(ii) Provision of and setting up special criminal courts to
deal with corruption and economic crimes.
(iii) The right and mechanism for a direct recall of
elected officials by the electorate.
(iv) Mandatory declaration of assets for public officials.
(v) Establishing, strengthening and institutionalizing the
National Economic Crimes Inspectorate (NECI).
(vi) Regular State sanctioned life-style audits.
(vii) Limited Terms of office for all senior public
executives including heads of State enterprises and parastatals.
(viii) Strengthening transparency mechanisms on State
procurement including the introduction of public bidding on major public
tenders.
(ix) Increased access to information for citizens including
publication of terms and conditions of public and public- guaranteed contracts.
(x) Strengthened oversight role for parliament in all
public enterprise.
(xi) Strengthened oversight role for the Civic Society and
the Media.
The MDC is committed to an efficient, corruption-free civil
service whose primary objective is to serve the citizen.
Maureen Kademaunga
Secretary for Public Service and Social Welfare
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