via NSSA boss gave himself $220k loan 25/03/2014 NewZimbabwe
MOST companies and individuals are reportedly struggling to secure funding from the country’s banks in a struggling economy that has been battered to its knees by a stubborn liquidity squeeze.
But money is not a bother for well-paid managers at the cash-rich National Social Security Authority (NSSA) who have helped themselves to cheap loans from what are effectively public funds at the state-run pension scheme.
The organisation’s general manager, James Matiza, earns US$20,000 per month but he also owes the organisation some US$212,816 in outstanding repayments for a loan secured from the company.
Matiza is not alone. Parliament’s Public Accounts Portfolio Committee heard Monday that eight of the top managers at NSSA owe the organisation more than US$1,7 million in outstanding loan repayments.
Other employees owe the institution a combined US$18,9 million, bringing the total internal staff lending to about US$23,6 million.
Borrowing costs on the local market can be quoted as high as 35 percent, a prohibitive rate for farmers and manufacturers, but Matiza and his staff get money on the cheap – three percent interest per annum for top managers and five percent for other workers.
MPs expressed concern over the way the organisation was being run with committee chair Willias Madzimure (MDC-T) saying: “NSSA is set up by an Act of Parliament and you cannot treat NSSA business as any other business. So, whatever is done should be to the interest of (the contributors)…”
Meanwhile, it also emerged that, in addition to his $20,000 basic pay packet, Matiza is also entitled to a holiday allowance of US$7,800 per annum and a NSSA-maintained Toyota Land Cruiser.
Divisional directors are paid US$12,705.79 per month along with annual holiday allowances of US$5,800 and NSSA maintained Jeep Cherokees. Executive heads earn US$10,765.68 per month in addition to about US$5,800 in annual holiday allowances every two years.
Again, NSSA managers are also directors of companies in which the organisation has invested, drawing thousands of dollars in board allowances.
The organisation has interests in 64 of the 69 companies listed on the Zimbabwe Stock Exchange (ZSE), holding at least 10 percent of the shares in some 12 firms.
NSSA Managers who are sit on the boards of these companies and those who do not each earned $111,000 in directors fees per year, Matiza told the legislative committee.
The revelation prompted Madzimure to ask the NSSA boss: “Is it proper for individuals to pocket the fees instead of submitting them to NSSA?”
Chikomba East MP, Edgar Mbwembwe (Zanu PF) was not impressed and told Matiza that his explanations were “inconsistent and contradictory”.
“You are bringing in the argument that they are putting in extra effort. I don’t know of any companies that have such practices,” said the legislator.
COMMENTS
Great skills brothers. How are you managing with the repayments? What nothing so far? Is the zero interest too much for you? Shame poor fellows and now they are picking on you in parliament and the press. Maybe it is time for you to jump off the Victoria Falls bridge without a bungee.
It looks like these CEOs have strong hold to our current government because they show no remorse at their actions.We are really doomed because if individuals can do this kind of looting with impunity then God knows what will happen next.
THEY ALL HAD AUTHORITY FROM CEO, ZIMBABWE! HE KNOWS ALL ABOUT THIS! JUST INOMPETENT!
Will the money ever be repaid, probably not!!
Just another example of rampant theft and corruption.
NSSA charges companies 50% (FIFTY percent!!) penalty when we are late paying the NSSA contributions. They send their merciless “Compliance Inspectors” to our businesses to harass us and they garnish funds directly from our bank accounts if we are in arrears.
For what? So that they can pay themselves huge salaries and take out massive loans at 3% interest. Payment of pensions seems to be an entirely minor consideration for NSSA. Compare the $20,000 per month that the NSSA General Manager pays himself with the $10 per month that NSSA pays widows of contributors.
I call this “Theft by Statutory Instrument”.
Let us all refuse to pay. When NSSA first came about most companies boycotted due to shady stuff. It is about time we did it again. I am sick and tired of paying for service we do not get and paying subs etc from struggling businesses in order to facilitate the fat cat syndrome. Where are we going to say zvakwana! Zvakwana! People should begin to get a class action suit filed against these thieving institutions!
NSSA for natsayi kuba
This amounts to criminal malfeasance. When the average citizen lives day to day trying to put a meal on the table these criminals loot like there is no tomorrow (which is probably close to the truth) There is actually a strong case here for them all to be rounded up and summarily executed (Mugabe included) They are despicable, immoral and unethical criminals.