Categories: Stories

Government appoints board for proposed NSSA building society

Government has appointed a board for the National Social Security Authority (NSSA)’s proposed social security building society in a move to strengthen the authority’s investment portfolio of the following the collapse of its merchant bank.

NSSA was recently granted a licence to operate the mortgage lender, which will be a successor to the failed Capital Bank whose operating licence was cancelled last June.

The appointment of the nine directors will pave way for the appointment of a new management team. The board will be led by chairman Gamaliel Mhofu Bwanya whose deputy will be Precious Sibiya.

Other members include David Mnangagwa; Jean Maguranyanga; Nimrod Chiminya; Tinotenda Kambasha; Sibusisiwe Bango; Josephine Ncube and James Matiza.

“We have met all the other requirements for the building society licence,” labour minister Prisca Mupfumira told a press briefing.

She said $50 million had been set aside for the setting up of the building society, adding that a new NSSA board, which will be announced in a fortnight, would allocate the funds to the financial institution.

NSSA is a significant shareholder in FBC Bank, but it’s dalliance with Capital Bank failed dismally when it was shut down last year.

The bank was deemed unsafe financially, which its existence characterised by undercapitalisation, persistent losses, chronic liquidity challenges and inordinately high levels of non-performing loans.

The bank was part of Patterson Timba’s Renaissance Holdings, which collapsed in 2011 in a cloud of poor corporate governance allegations.

NSSA, a statutory pension scheme set up in 1989 to which all employees make contributions, took a controlling 84 percent stake in the bank in 2012 after converting its $8.5 million deposit into equity and rebranded it.- The Source

(684 VIEWS)

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

Reserve Bank of Zimbabwe expects more foreign currency sellers to join the interbank market

The gazetting into law of the payment of quarterly taxes on a 50-50 basis in…

December 4, 2024

Zimbabwe 2025 citizens’ budget

Zimbabwe has today unveiled a ZiG276.4 billion budget for 2025 during which it expects the…

November 28, 2024

To go or not to go- Mnangagwa in a quandary

Zimbabwe President Emmerson Mnangagwa has repeatedly stated that he is not going to contest a…

November 25, 2024

ZiG loses steam, falls against US dollar for five consecutive days

The Zimbabwe Gold fell against the United States dollar for five consecutive days from Monday…

November 22, 2024

Indian think tank says Starlink is a wolf in sheep’s clothing

An Indian think tank has described Starlink, a satellite internet service provider which recently entered…

November 18, 2024

ZiG firms against US dollar for 10 days running but people still do not have confidence in the currency

Zimbabwe’s new currency, the Zimbabwe Gold (ZiG), firmed against the United States dollars for 10…

November 16, 2024