National Social Security Authority (NSSA) pensioners have
not only suffered from questionable investments, as uncovered by a forensic
audit, but also from a 15-month moratorium on new investments.
The moratorium resulted in the value of US$150 million in
cash holdings seriously eroded by inflation in the later part of the moratorium.
The ban on new investments was imposed by then Public
Service, Labour and Social Welfare Minister Priscah Mupfumira in February last
year, around the same time that a full forensic audit of NSSA was started.
The rationale for the moratorium was to prevent further
investments that could be regarded as suspicious, criminal or just incompetent.
On assuming office in September last year, the new minister
Dr Sekai Nzenza, maintained the moratorium as the forensic audit was still in
progress.
Sources at NSSA allege that after the introduction of the
interbank market in February, the 1:1 rate collapsed, leading to the erosion in
value.
There are concerns that the money lost value at a time when
pensioners are earning a pittance, which can barely buy a 10kg bag of
maize-meal.
Reads part of a dossier availed by sources within NSSA;
“Since late 2018, NSSA board was instructed by the minister not to carry out
commercial and trading activities of its investable funds. As a result, an
amount of US$150 million then remained in NSSA bank accounts earning no
interest and no financial gain.”
The Herald has established that Minister Nzenza lifted the
moratorium in April this year, a month after the forensic audit was concluded
and two months after the present board took office.
The moratorium was lifted on condition that the board would
follow through on all the findings and recommendations of the forensic audit
report.
Responding to the allegations, NSSA board chairman Dr
Cuthbert Chidoori said: “At the time the current board came into office
(February 2019), it found out that in February 2018, the then Minister of
Public Service, Labour and Social Welfare (MPSLSW), had called for a forensic
audit on NSSA activities covering the period 1st January 2015 to 28 February
2018.
“The minister had also put a moratorium on all investment
activities pending the conclusion of the forensic audit. This all happened
during the tenure of the previous board whose tenure expired on 12th October
2018.
“The authority was, therefore, unable to carry out normal
investment activities since then, resulting in accumulation of large cash
balances.”
Dr Chidoori said when Minister Nzenza came into office, she
only “reaffirmed the moratorium” since the forensic audit was not yet complete.
He said Minister Nzenza directed that the moratorium should
remain in force until there was a new board.
“The minister explained to the current board during their
induction that the reinforcement of the moratorium was indeed necessary after
noting the lack of due diligence and the losses incurred on some investments in
NSSA,” said Mr Chidoori.
“The minister was also waiting for the outcome of the
forensic report on investment and suspected massive irregularities and some of
them which have turned out to be criminal.”
The forensic audit was completed in March this year and the
moratorium was lifted the following month after the board gave assurances it
would follow through on all the findings and recommendations in the forensic
report.
Last week, Minister Nzenza described as “hogwash”, claims
that she made unilateral and unprocedural decisions in the selection and
remuneration of the ICT specialist and lawyers tasked with unpacking the
forensic audit report.
Dr Chidoori said procedures in the Public Entities and
Corporate Governance Act were followed to clean up NSSA.
Explaining the process of the board’s clean-up programme he
said: “To follow through on all the recommendations detailed in the forensic
report, the board identified the five key areas where there were serious
irregularities namely, Information and Communication Technology (ICT),
Properties, Investments, Human Resources and Corporate Governance.
“There was also a concern on NSSA
policies and practices which required research to bring
them into line with best practices as far as social security provisioning is
concerned,” he said.
“With the concurrence of the minister, a team of six expert
lawyers was appointed in full compliance with the procurement laws and
regulations of Zimbabwe for a period of 30 days. They were required to comb
through the detailed forensic audit report, together with the massive boxes of
the annexures and to identify organisations and individuals within and without
NSSA, who were to blame for the plunder of NSSA resources identified in the
report.
“Notwithstanding the delays suffered in preparing and
obtaining approval of the contracts, the expert lawyers produced a
comprehensible report for the board and the ministry for their adoption on the
way forward.”
Dr Chidoori said the forensic report unearthed scams in
NSSA, where huge sums of money which runs into hundreds of millions of US
dollars had been lost through the shenanigans of some individuals at NSSA.
Twenty-four workers have been sent on forced leave to pave
way for investigations, and those absolved will return to work.
The audit found most of the 24 were irregularly appointed
without being the first in their interviews, where these were held.
The NSSA board will seek to regularise these appointments.
“The forensic report has uncovered huge amounts of money
which were given to staff as loans in breach of the conditions of service,”
said Mr Chidoori.
“There are allegations of lavish lifestyles by NSSA staff,
while pensioners wallow in poverty, possibly necessitating a lifestyle audit.
The board will seek to recover all monies, including monies which may have been
given to staff who are no longer with NSSA.”
NSSA last week announced significant increases in pensions,
with the minimum general pension rising to $200 a month from $80, and those who
were getting above the new minimum having a 65 percent rise. Herald
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