via Change NSSA board, management: Parly July 14, 2014 by Veneranda Langa
THE Parliamentary Portfolio Committee on Public Accounts has recommended an immediate change of management at the National Social Security Authority (NSSA) and appointment of a new board of directors after the parastatal lost millions of dollars between 2011 and 2012 in botched investment deals approved by the previous board.
Presenting her report to Parliament last Thursday, committee chairperson Paurina Mpariwa (MDC-T Mufakose MP) urged Public Service, Labour and Social Welfare minister Nicholas Goche to urgently appoint a new NSSA management board to safeguard pensioners’ funds.
Some of the questionable investments that almost bled NSSA to its knees include a $56 million exposure in Capital Bank, construction of Biri Dam, Ekusileni Medical Centre in Bulawayo, unsecured staff housing loans as well as failed land deals.
Audit of 2011 and 2012 NSSA accounts by the Auditor-General revealed anomalies in the use of pension funds resulting in losses.
“It is clear that there have been significant and serious lapses of judgment by the management of the authority which are going to cost the authority many millions of dollars in funds that should have been securely and profitably invested on behalf of contributors,” the committee report read.
“In the absence of any significant improvement in this state of affairs, the line minister responsible must examine the possibility of fundamental change in management and control at the authority.”
COMMENTS