NSSA exits ‘insurance’and other investee companies

NSSA exits insurance’ and other investee companies

HARARE, The National Social Security Authority (NSSA) Board Chair Robin Vela will step down from the board of directors of all its investee companies that include several insurance companies as part of removing perception that some of NSSA’s investee companies were not treated fairly and equitably.

NSSA has interest in companies that include FBC Holdings Limited, First Mutual Holdings Limited, First Mutual Wealth Limited; and FBC Reinsurance Limited.

“In seeking to continue to “walk the talk” and ensure that all NSSA’s investee companies are treated equally, Robin Vela (as Chairman of NSSA) will voluntarily step down from the board of directors of all companies in which NSSA has an interest.

“To ensure a smooth hand over, due notice and a clear responsibility cut-off date, the resignations will be effective on 31 December 2017,” Vela said in Q2 2017 update report.

Vela said NSSA continues to hold itself and its investee companies to account, as objectively demonstrated by its recent actions at ZB Financial Holdings Limited, CBZ Holdings Limited, and other not widely publicised actions.

NSSA was deeply concerned with the developments at ZB Financial Holdings and called an EGM to tackle the areas of concern, chief of which was an illegal dividend payment of $658,999 to Transnational Holdings (“THL”) in January 2017 and the demands by THL for a further issue of new shares.

A lesser dividend had been paid to the Government of Zimbabwe before THL was a registered shareholder at the record date of the payment in June 2016.

“NSSA therefore demanded the repayment of the dividend back to ZB through a special resolution.

The rejection of the new issue of shares and changes to the Board of ZB were also made through an ordinary resolution,” he said.

During the quarter, Nicoz Diamond made a strategic decision to increase the Authority’s presence in the short term insurance sector through an additional investment in Nicoz Diamond which became a subsidiary of NSSA in May 2017.

Nicoz Diamond is a dominant player in the short term insurance market and fits well in the strategic insurance cluster held by the Authority.

However, the stake has since been notified for sale to another insurance giant, First Mutual Holdings and the transaction is currently under negotiations.

On other hand, NSSA is finalising the launch of a voluntary contributory scheme targeting previously excluded groups such as the informal sector, small-to-medium enterprises and domestic workers.

The scheme, which will be on a voluntary basis, will be tailor made to suit the needs of the target groups to make it both relevant and accessible.

The Board has also approved a 33.33% increase in the minimum retirement pension from $60 per month to $80 per month effective 1 October 2017.