Adhere to good corporate governance, NSSA told
GOVERNMENT and other key stakeholders have called on the National Social Security Authority (NSSA) to adhere to good corporate governance to ensure benefits accrue to contributors and pensioners.
This emerged yesterday during the authority’s annual general meeting (AGM) for 2018 held in Harare to discuss financial performance for last year and to obtain feedback from stakeholders on issues captured in the annual report.
Stakeholders said delaying AGMs was not in line with good corporate governance tenets.
Public Service, Labour and Social Welfare Minister Professor Paul Mavima said it was time for NSSA to abandon bad corporate governance which characterised previous administrations.
“The authority over the years has allegedly been associated with poor corporate governance practices which have resulted in significant asset losses,” he said.
“Good corporate governance is a fundamental prerequisite for the effective management of any institution, whether private or public, but more importantly for institutions that have a fiduciary role.
“It is critical to note that best practice on corporate governance now recognises that corporate governance is not just a preserve of the board and shareholders, but should include a much broader range of all stakeholders.”
Prof Mavima said the Government did not like bad corporate governance, adding that it had since adopted zero tolerance to corruption.
“The Second Republic led by His Excellency, the President ED Mnangagwa, has declared zero tolerance to corruption and made good governance a top priority on the Government’s agenda,” he said.
“To demonstrate its seriousness in improving governance, the Government has since promulgated the Public Entities Corporate Governance Act (10:31) and various guidelines.
“The Act makes it mandatory for all public entities to hold an annual general meeting at least once every year.
“This AGM has, therefore, been called in compliance with requirements of Section 33(3) of the Act and will become an annual calendar event.”
Prof Mavima demanded a paradigm shift in the way NSSA operated, for pensioners to benefit.
“We will all become pensioners one day, so let us have a keen interest in making sure that NSSA delivers on its mandate,” he said.
Zimbabwe Congress of Trade Unions (ZCTU) president Mr Peter
Mutasa, who is a stakeholder in NSSA since labour is required to be represented on the board said: “What we need is for the NSSA board and all stakeholders to look at a legislative agenda which should look at three objectives; governance, investments and delivery, and aligning NSSA to the current environment.
“What is the pensioner getting compared to what they contribute?
“We should look at reforming how investments are done. Also, look at ensuring that as NSSA is going into the future, it should guarantee social security.”
Mr Mutasa said some investment decisions taken by NSSA in the past were questionable as they did not deliver fair value to contributors.
Zimbabwe Federation of Trade Unions ( ZFTU) secretary- general Mr Kenias Shamuyarira questioned why workers still did not have accommodation when NSSA, through its National Building Society ( NBS), had constructed over 526 houses of which 153 had been snapped up on mortgage.
NSSA board chairman Dr Cuthbert Chidoori said bad practices of the past, including not holding AGMs when they became due, would not be tolerated.
“We have had a deliberate agenda to engage our stakeholders,” he said.
“We have taken it upon ourselves to meet the minister and the former minister.”
In terms of investments, Dr Chidoori said going forward, due diligence was required when investing contributor funds.