Home » General » ZIMBABWE’S SOCIAL SECURITY FUND SIZES BANK’S PROPERTY OVER 25 MLN USD DEBT

HARARE, March 25– The National Social Security Authority (NSSA), which runs Zimbabwe’s compulsory national social security pension scheme, has seized Metropolitan Bank’s assets worth 27 million US dollars to recover the money it gave the bank for lending to local authorities.

NSSA General Manager James Matiza told Parliament’s Public Accounts Committtee here Monday that the authority had placed deposits with Metbank for on-lending in 2012 before the bank fell on hard times.

He said NSSA lent Metbank the money following a request by Local Government, Public Works and National Housing Minister Ignatius Chombo to assist local authorities with loans to clean cities towards the rainy season to avert cholera and typhoid.

The funds were deposited in Metbank but the NSSA failed to recover the money and resorted to disposing the security it had been given as assurance.

As a result of interest rate charges on loans, the 15 million USD ballooned to 27 million USD because of non-payment by Metbank. Matiza said Minister Chombo directed NSSA to deposit the 15 million USD with Metbank.

“They cited that the 15 million USD assistance should go through Metropolitan Bank and this is why Metropolitan Bank’s deposits went up to 25 per cent. So we gave that 15 million USD for distribution to local authorities in Harare and Bulawayo for cleaning the cities so that we would avoid diarrhoeal diseases. But what has happened is that Metropolitan Bank has fallen on hard times,” he said.

Matiza said NSSA had disposed the 27 million USD security it had been given by Metbank to recover its money and now has to pay the difference back to the bank.

“We actually are holding assets for Metropolitan Bank worth 27 million USD while they owed us 25 million USD. So we actually owe Metropolitan change worth 2.0 million USD. We have already recovered our 25 million USD but we still hold 2.0 million USD excess which we are going to pay them,” he said.

Committee members raised concern over the way Minister Chombo directed NSSA to put money into Metbank which soon after fell on hard times

SOURCE: NEW ZIANA

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