THE National Social Security Authority (NSSA) has appointed an investment expert to its Board under its restructuring exercise as the Authority seeks to redress previous poor investments that resulted in losses of millions of dollars in failed deals.
Board Chair Richard Vela in a Q4 update said the decision will spell a new direction and bring the seemingly lacking stakeholder satisfaction with investment decisions.
“The Board has previously noted its concern with NSSA’s historic poor investments and investment performance. In order to chart a new direction and bring the seemingly lacking stakeholder satisfaction with investment decision, the Board resolved to appoint an investment expert to the Investment Committee of the Board.
“Subsequently, with, as required by the NSSA Act, the consent of the Honourable Minister of Public Service, Labour and Social Welfare, Priscah Mupfumira, Fungai Ruwende was appointed as Investment Expert with effect from 1 December 2015,” he said.
Ruwende is a former partner of Actis, a leading emerging markets private equity firm managing in excess of $7 bln of funds in Africa.
He is also a former member of the Public Investment Corporation of South Africa Investment Committee for Africa private equity and Infrastructure.
Vela said all decisions of the Investment Committee that do not carry the Investment Expert’s favorable opinion will be explained in writing.
Under the restructuring exercise, five top managers have been being retrenched owing to their poor investment decisions.
“The board remains committed to its promise to take back the Authority to its members. This means putting members first through managing funds responsibly and making decisions in the best interests of our members, stakeholders and the nation at large,” he said.
Vela said the Authority has also enlisted the services of an international firm to audit its assets and confirm its balance sheet and was also engaging firms in which it is invested to ensure they perform and deliver value for pensioners.
“The Board assisted by an international audit firm has begun a comprehensive exercise to verify all assets and confirm the balance sheet figures of the Authority. This included an exercise to officially document all property and land transactions and confirm availability of documents like sale agreements, payment confirmations and title deeds,” he said.
Vela said the Board remains committed to its promise to take back the Authority to its members and this means putting members first through managing funds responsibly and making decisions in the best interests of members, stakeholders and the nation at large.
In terms of the National Building Society project, Vela said it remains on course and its board continues to make progress towards the achievement of a launch date at the end of the first quarter of this year.
Vela said the Board is in the process of analyzing findings of the various audits carried our prior to and during its term of appointment. – FinX
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