HomeLocal NewsNssa loses US$11,4m in closed banks

Nssa loses US$11,4m in closed banks

THE National Social Security Authority (Nssa) — mandated to provide social security to workers — has all but lost US$11,4 million which it invested in financial institutions that have gone under due to mismanagement and economic problems buffeting the country.

Hazel Ndebele

Nssa released unsecured public funds to several banks including Interfin (US$4 930 767), Capital (US$4 196 000), Royal (US$343 907), Genesis (US$585 855) and Tetrad Securities (US$1 353 000).
This is contained in a strictly private and confidential Deloitte audit report on Nssa, dated October 30, 2015 exclusively seen by the Zimbabwe Independent. The audit was a review of Nssa for the period August 1 2013 to June 30 2015.

The report also shows that US$34 071 409 was spent at these banks under “money markets investments” on Nssa’s two schemes, the National Pension Scheme (NPS) and the Workers Compensation Insurance Fund (WCIF) also known as The Accident Prevention Scheme.

“The amounts presented on the balance sheet as at 30 June 2015 for the two schemes under ‘money market investments’ may be overstated by at least the value of unsecured positions with distressed financial institutions of US$11,4 million,” the report reads.

Deloitte Advisory Services director Tich Mudede said in an introduction the report is based on information and explanations provided to the firm by Nssa management in response to specific questions.

Part of the objectives and scope of work of the report was to confirm the authority’s balance sheet as at June 30, 2015 by checking the assets and liabilities on and off the balance sheet.

The report also reviewed the payroll which covered the remunerations of staff and the board for compliance with standing directives, as well as travel and accommodation expenditure.

The parliamentary portfolio committee on public service, labour and social welfare has accused Nssa of abusing pension contributions and called for a review of the Social Security Act with a view to cushioning pensioners from the current harsh economic environment.

In 2010, just a year after Zimbabwe introduced the multi-currency regime (dollarisation) following the hyperinflation-induced demise of the Zimbabwean dollar, Nssa started grabbing headlines for making poor investment decisions with pensioners’ money.

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