Information
gathered by The Sunday Mail indicates that the latest development follows the
CGU’s rejection of most benefits proposed for Dr Charles Shava, the prospective
substantive general manager of NSSA, as they were considered to be inconsistent
with the new public sector remuneration framework.
The CGU is a
department whose primary mandate is to oversee, direct and monitor reforms
within public entities, ensuring adherence to good corporate governance
practices, public procurement and disposal of public assets.
It is believed
Dr Shava, who has served as acting general manager at the State-owned pension
and social security fund since July 2022, emerged favourite for the substantive
position among six other candidates.
The CGU has
since submitted its feedback on Dr Shava’s remuneration benefits to NSSA’s
parent ministry.
It also
indicated that it will separately develop its guidance on salaries and benefits
for senior staff members at the authority.
“During its
review of Dr Shava’s contract, the Corporate Governance Unit found
inconsistencies between some benefits and the established remuneration
framework for public entities, a discrepancy affecting not only Dr Shava but
also other senior staff at NSSA,” said a source privy to the development.
“More
importantly, these benefits were observed to be significantly higher compared
to those at other public entities, which is why the CGU will actively address
this matter to provide guidance on appropriate remuneration schedules for
senior staff members at NSSA.”
This is not the
first time NSSA, which holds diverse shareholdings in numerous publicly listed
and unquoted firms, has faced scrutiny over hefty salaries.
In 2018, its
management was questioned over salaries exceeding the threshold established in
2014 by Cabinet, which set a monthly salary cap of US$6 000 for chief executive
officers of public entities.
This drew
criticism from the public, especially considering the meagre payouts to
pensioners at the time.
It has since
been established that NSSA had proposed a basic salary of US$15 730 for Dr
Shava, of which 40 percent would have been payable in United State dollars,
with the remainder in the domestic currency.
The CGU,
however, has ordered a downward review, citing Section 20 (2) of the Public
Entities Corporate Governance (PECG) Act, which stipulates that maximum
remuneration, allowances and benefits for public entity staff and senior
executives should generally not exceed 30 to 70 percent of the entity’s revenue
or operational budgets.
The NSSA board
had also proposed a performance bonus of 25 percent of the annual basic salary,
equating to roughly US$47 280 annually, or US$3 940 monthly.
In this case,
the Government recommended that performance bonuses should not exceed 25
percent of the annual basic salary and be based on the entity’s overall
performance.
Further, the
proposed contract also stipulated that Dr Shava be provided with a house in one
of Harare’s low-density suburbs, which was rejected, as the authorities believe
that NSSA housing or accommodation should not be part of standard service
conditions for the general manager’s contract.
Instead, if
NSSA provides accommodation for the general manager, it should be subject to
commercial rental fees under a lease agreement.
The board had
also proposed a 10 percent representation allowance on the monthly basic
salary, amounting to approximately US$1 730, for Dr Shava’s representational
duties for NSSA.
Concerning the
school fees allowance, the contract had proposed to cover 100 percent fees for
up to three children, benchmarked at Prince Edward School and Africa University
in Mutare.
While the
contract aligned on the number of beneficiaries (biological or officially
adopted children in Government primary and secondary schools), it differed on
university fees, suggesting tuition should be capped at Government universities
and polytechnics, like the University of Zimbabwe or Harare Polytechnic.
It further
noted that the educational allowance excludes levies and examination fees, and
is payable upon presentation of an invoice.
On professional
subscription costs, the CGU rejected the proposal for the authority to fully
cover subscriptions to three professional bodies of the general manager’s
choice.
The proposed
contract also entitled Dr Shava to 24-hour security at his residence upon
presentation of an invoice from a reputable security firm.
However, this,
too, was declined since it is not provided for in the new remuneration
framework.
Other rejected
benefits included a full DStv bouquet, two domestic workers, fully paid holiday
allowance for the general manager and spouse in business class flights and a
maximum of four children in economy class, plus an allowance of US$3 000 per
person.
A vehicle loan
up to the annual gross salary and payments for personal development were also
declined.
NSSA
chairperson Dr Emmanuel Fundira told The Sunday Mail that due process for
appointing the substantive general manager was underway, emphasising that the
process extended beyond the purview of the board to also include other relevant
State agencies.
“The selection
of our substantive general manager is proceeding through the established due
process, which includes the crucial participation of various State entities,
not just the board,” Dr Fundira said.
“It is a matter
we are treating with utmost seriousness.” He, however, declined to confirm
whether Dr Shava was the prospective candidate.
“We will make
the announcement at the right time.”
Efforts to get
a comment from CGU head Mr Allen Choruma were not fruitful.
NSSA has often
been affected by periods of instability due to frequent changes of leadership,
raising questions about the long-term direction and effectiveness of the social
security fund.
Since 2015,
NSSA has witnessed frequent turnover in key positions.
Mr James
Matiza’s dismissal in October 2015 marked the beginning of this turbulent era,
followed by a brief interim leadership under board member Mr Hashmon Matemera.
Ms Elizabeth
Chitsiga’s tenure, beginning in August 2016, ended in 2018, paving the way for
Mr Emmerson Mangwariri, who was subsequently relieved of his duties in 2020.
Mr Arthur
Manase’s appointment in January 2021 was also short-lived, as he was suspended
in July 2022, leading to Dr Shava’s initial assumption of leadership on a
rotational basis.
Following a
six-month acting period, a planned handover to Ms Agnes Masiiwa was abruptly
reversed within 24 hours.
This turnover
has not been peculiar to the general manager’s office. The board itself has
experienced frequent changes in chairpersons.
Dr Robin Vela,
who was appointed in 2015, was dismissed in 2018.
Mrs Daphine
Tomana briefly served as acting chairperson in April 2018, before Mr Cuthbert
Chidoori’s appointment in February 2019, whose board was ultimately dissolved
in November 2020.
Dr Percy
Toriro’s tenure, commencing in May 2021, concluded with his resignation in
March 2023. Sunday Mail
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