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The National Social Security Authority (NSSA) has come under scrutiny for controversially issuing a total of ZWL$12 billion in loans and advances that lack any supporting loan agreements or formal arrangements.
This finding was revealed in the Auditor-General’s report for the Financial Year ended December 31, on State-owned Enterprises and Parastatals.
The absence of proper loan documentation raises questions about the legitimacy and purpose of these ZWL$12 billion in disbursements, which appear to have been made in a murky and unstructured manner. Acting Auditor-General Rheah Kujinga said:
<blockquote>
The Group disclosed an amount of ZWL$13.1 billion as loans and advances. In this amount, ZWL$12 billion was not supported by any loan agreements or loan arrangements.
As a result, I could not satisfy myself on the recognition, measurement and disclosure of these loans in the 
financial statements.
</blockquote>
By disbursing loans amounting to ZWL$12 billion without the support of loan agreements, NSSA is risking significant losses to pensioners’ funds.
The Auditor General’s report further disclosed that NSSA board members are flouting the law by neglecting to declare their assets, which raises critical concerns about their integrity.
According to Section 37 of the Public Entities Corporate Governance Act [Chapter 10:31], board members and senior staff are required to declare their personal assets within three months of their appointment. This requirement is crucial for maintaining probity, transparency, and accountability.
Acting Auditor-General Rheah Kujinga has warned that the failure of NSSA board members to declare their personal assets poses a risk to the board’s oversight role, transparency, and accountability.
She has instructed NSSA to enforce annual updates of asset declarations by board members. Said Kujinga:
<blockquote>
The Authority’s Board members did not declare assets within three (3) months of appointment. This was contrary to the Public Entities Corporate Governance Act [Chapter 10:31] Section 37 which requires declaration of assets to be done by the Board and senior members of staff.
Senior members of staff and the Board should declare their assets in line with Section 37 of the Public Entities Corporate Governance Act [Chapter 10:31].
</blockquote>
NSSA has been plagued by financial scandals over the years, where privileged managers have received generous loans and perks, while pensioners endure severe poverty.
Currently, pensioners receive a paltry US$50 per month from NSSA.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

The National Social Security Authority (NSSA) made $12 billion in loans without proper documentation, according to the Auditor-General's report. This raises concerns about where the money went and if it will be paid back, risking pensioners' funds. The report also found that NSSA board members are not declaring their assets as required by law, which affects transparency and accountability. The Auditor-General instructed NSSA to enforce asset declarations to ensure proper oversight. NSSA has a history of financial scandals, where managers receive benefits while pensioners struggle. Pensioners currently receive only $50 per month from NSSA.

NSSA Made Unsubstantiated $12 Billion Loans And Advances In 2023 - AG Report

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