Ipec ill-equipped to regulate Nssa

FINANCE minister Mthuli Ncube on Tuesday said the Insurance and Pensions Commission (Ipec) has no capacity to regulate a “complex” organisation such as the National Social Security Authority (Nssa).

His remarks follow stakeholders proposals that the Insurance and Pensions Bill currently being crafted by Parliament should include clauses that stipulate that Nssa, a multibillion-dollar State-run pension scheme be regulated by Ipec.

Ncube yesterday told the National Assembly that following debate in Cabinet, it was decided that Ipec should first have the capacity to regulate organisations such as Nssa before being given the mandate to do so.

“The issue of Nssa has been raised by many contributors. Initially we had included the issue of Nssa and the medical aid societies principles in the Bill, but after thorough debate in Cabinet, it was felt that perhaps at this stage Ipec may not be equipped as yet to regulate an organisation that is as complex and as strategic as Nssa,” Ncube said.

"In the future, this is something that is still open to debate and we might include Nssa after thorough analysis. A separate Bill is being crafted by the Ministry of Health because they have the feeling that this kind of regulatory body from medical aid societies, needs specialists in the medical field, yet Ipec does not have specialists that can regulate medical aid societies,” Ncube said.

Ncube added that the Insurance and Pensions Bill would actually address the issue of the regulator and quality of regulation, which is the third reason identified by the Smith Commission.

“It is also dealing with the predatory behaviour of the insurance companies or companies that are providing life cover to our hardworking citizens.”