Reprieve for defaulting firms from NSSA

14 Sep, 2014 - 07:09 0 Views
Reprieve for defaulting firms from NSSA Industrialists follow proceedings during a NSSA meeting in Bulawayo on Friday

The Sunday News

Industrialists follow proceedings during a NSSA meeting in Bulawayo on Friday

Industrialists follow proceedings during a NSSA meeting in Bulawayo on Friday

THE National Social Security Authority has put more than 100 companies in Matabeleland region on flexible payment plans for pension contributions as most were struggling to remit the money in time due to increased operational challenges they are facing.
NSSA general manager, Mr James Matiza, told a Confederation of Zimbabwe Industries gathering in Bulawayo on Friday that by the end of August, 61 companies in Bulawayo were on the payment plan.

Hwange had 31, Gwanda 10, Victoria Falls six and Beitbridge had five.
“We are not insensitive. The legislation says you must pay and it does not even have a provision for a payment plan. But we know many companies are struggling that is why we have even gone out of what is contained in the law to accommodate those that are struggling,” he said.

Mr Matiza said his company did not favour garnishing, encouraging companies to approach his offices to negotiate payment terms.

“We do not like garnishing companies. This is only a last resort,” he said, although he would not provide statistics of companies NSSA had garnished as of the same period.

“When we do inspections, only those who have not registered with NSSA are immediately garnished. For those that are registered and not paying we normally encourage them to negotiate for terms.”

The authority manages two social security schemes — the National Pension Scheme and the Accident Prevention and Workers’ Compensation Scheme.

The schemes are financed through premiums paid by employers and employees.
Matabeleland Chamber of Industries president Mr Busisa Moyo said the move by NSSA was welcome and encouraged companies facing problems to approach the authority.

“We hope this open door policy heralds a new and cordial working relationship with NSSA,” he said.
Mr Matiza said although there were debates internationally on whether social security companies must invest in the productive sector, NSSA had invested money in more than 14 companies as a way of contributing to the growth of the economy.

“Our monthly collections is around $20 million and our monthly expenditure is around $9,5 million which means we have a surplus of $10 million every month. This is the money we are investing.”

Companies where NSSA holds shares include Art Corporation, Starafricacorporation, Cottco and Africom.
Mr Matiza said NSSA had also extended loan facilities to the productive sector through banks.

“Money market exposure through banks as at 31 July 2014 was $173,6 million. Interest rate was reduced to 10 percent ( from 15 percent) with effect from August 2011 and further down to seven (previously 10 percent) with effect from 1 January 2013.”

However, some captains of industry who attended the meeting said the cheap money provided by NSSA was rarely available as banks never openly announced such facilities.

On housing Mr Matiza said the authority was in the process of setting up a micro-finance bank which would be initially be capitalised with $50 million used as a special purpose vehicle to spearhead construction of houses across the country.

“We met with the central bank to finalise the process of registration and soon we will make an announcement.”
He said the programme suffered a major setback when municipalities repossessed land which the authority had bought during the hyper-inflation era.

“We have talked to Masvingo municipality and they have agreed to give us back our land. From Masvingo we are coming to Bulawayo and we hope the city council will give us back our land in Pumula South.”

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