FRESH details have emerged of how the National Social Security Authority’s (NSSA) funds were abused in the purchase of the mobile network service provider Telecel, the Zim Morning Post has heard.
Government seized control of Telecel Zimbabwe after concluding a US$40 million deal to take over the country’s third largest mobile operator by buying out international telecommunications giant, VimpelCom, which ultimately held 60% in the local company.
At the material time Supa Mandiwanzira was the Minister of Information Communication Technology and Cyber Security.
Investigations revealed that Mandiwanzira convinced the then Nssa chairman Robin Vela to release the pensioners funds to finance the deal.
Reports are that Mandiwanzira together with Vela and former minister of public service labour and social welfare Priscah Mupfumira came to an agreement that saw Nssa releasing funds so that Zarnet could purchase the 60% stake in Telecel.
Correspondences seen by this publication reveal that Vela and Mandiwanzira knew very well that using Nssa in the purchase of Telecel was illegal.
However, in 2015, Vela regardless of knowing that the Telecel purchase was in contravention of the parastatal’s mandate went on to recommend the deal at the insistence of Mupfumira.
In one of the correspondences to Mandiwanzira, Vela wrote:
“I can disclose that NSSA’s Investment’s team and management had formally declined to participate in the transaction based on Chinembiri’s continued assessments that NSSA was just a ‘funder’ providing an unsecured loan.”
“This is fundamentally against NSSA’s mandate as given NSSA is a custodian of pensioners funds on which securing the capital and gaining a return on the same is a critical requirement.
“NSSA does not lend funds directly to any company, it lends to banks to on-lend to the production sector but under strict and limited conditions. The Telecel transactions would not qualify as such.”
Vela further made indications on how Mupfumira had given the go-ahead on the transaction regardless of it being improper.
“Having spoken to my line minister Honourable Mupfumira who confirmed that government had taken a decision to have a transaction on basis which I believe will then be doable.”
Mupfumira has since been arraigned before the courts on charges of misappropriating NSSA funds.
She is facing seven counts of criminal abuse of office in which she stands accused of fleecing over US$100 million from NSSA.
