Government forces NSSA to save failing bank Government cash cow … National Social Security Authority (NSSA) office in Harare
An anonymous board member of the Reserve Bank of Zimbabwe (RBZ) recently wrote to Finance Minister Patrick Chinamasa suggesting that the National Social Security Authority (NSSA) inject more funds to resuscitate the failing Capital Bank.
Subsequently, the Ministry of Finance wrote to the Ministry of Civil Service, Labor and Welfare asking them to persuade the NSSA to invest $ 40 million to save the bank.
This was revealed by NSSA chief executive James Matiza during a hearing before lawmakers in Harare on Monday.
The NSSA also invested some $ 24 million, rising to $ 39 million in the bank following a directive from former finance minister Tendai Biti, with the state-run pension scheme admitting that the investment had been lost.
“We want to get out of this bank, as to what will happen to the $ 39 million, many of us do not get part of it,” said Matiza.
âI don’t think it’s a good idea to put in more money. We may be coerced, but our mandate to the Minister (of Finance) is to let the liquidation take place. “
Capital Bank was part of Patterson Timba’s business empire that collapsed in 2011 amid a cloud of allegations of poor corporate governance. Timba is the brother of senior MDC-T official Jameson Timba.
Matiza said she received another letter dated February 21, 2014 from the Reserve Bank of Zimbabwe saying she was not happy to cancel the bank’s license.
Hurungwe North MP Rueben Marumahoko asked why the original finance ministry directive was issued to the NSSA and not the line ministry.
“What would he (Matiza) do as a little man if not accept the directive?” I sympathize with him, âhe said.
Lobengula MP Sipepa Nkomo confirmed that Matiza should have sought permission from his ministry before investing in Capital Bank.
âThe dollar entrusted to you belongs to the worker and it is not the minister’s money.
âYou failed to protect our money and keep putting more money into a bad investment. You should resign, âsaid Sipepa Nkomo.
“Let’s liquidate this damn bank and keep going,” said Bulawayo South lawmaker Eddie Cross.
Matiza claimed he advised the ministry not to invest.
Timba, said Matiza, was opposed to the bank’s liquidation and wanted to get it back on the grounds that it was undervalued during the takeover.