News / National
NSSA bosses in salaries scandal
11 Jul 2017 at 07:59hrs | Views
Auditor-General Mildred Chiri has revealed that National Social Security Authority (NSSA) bosses in May 2016 awarded themselves hefty salaries without the consent of the Public Service, Labour and Social Welfare ministry as required.
Chiri, in her 2016 audit reports on State enterprises and parastatals, said: "I observed that management's contracts had amounts that were in excess of the approved framework by the secretary for Public Service, Labour and Social Welfare in May 2016."
The unapproved salary increases were noted in NSSA grades E2 and E3.
For example, one manager in grade E2 had an approved salary framework of $7 775,13, but his basic salary on his employment contract was $11 000, which then gave a variance of $3 224,87.
Another manager in salary scale E3 had an approved salary of $6 240,04, but was earning an unapproved amount of $9 000.
Chiri said the risk of such behaviour by NSSA managers was financial loss due to excessive costs at the institution that manages public pension funds.
She recommended that the authority should recover the excess payouts or seek approval from the parent ministry.
NSSA management argued that their salary increases were above board.
"The salaries for the new executives are approved and comply with the given framework from the parent ministry," NSSA management said.
Chiri also noted in her audit report that there were some NSSA employees that had employment contracts stated in Zimbabwean dollars.
"Discussion with management revealed that these employees are now being paid in accordance to company pay grades. In the event of fraud and litigation, the entity cannot make claims without employment contracts," she said.
"The employees may not be able to make any claims towards the entity in the event of unfair dismissal if they do not have contracts of employment."
NSSA management's response was that all employment contracts were to be regularised by the end of last month.
Chiri, in her 2016 audit reports on State enterprises and parastatals, said: "I observed that management's contracts had amounts that were in excess of the approved framework by the secretary for Public Service, Labour and Social Welfare in May 2016."
The unapproved salary increases were noted in NSSA grades E2 and E3.
For example, one manager in grade E2 had an approved salary framework of $7 775,13, but his basic salary on his employment contract was $11 000, which then gave a variance of $3 224,87.
Another manager in salary scale E3 had an approved salary of $6 240,04, but was earning an unapproved amount of $9 000.
Chiri said the risk of such behaviour by NSSA managers was financial loss due to excessive costs at the institution that manages public pension funds.
NSSA management argued that their salary increases were above board.
"The salaries for the new executives are approved and comply with the given framework from the parent ministry," NSSA management said.
Chiri also noted in her audit report that there were some NSSA employees that had employment contracts stated in Zimbabwean dollars.
"Discussion with management revealed that these employees are now being paid in accordance to company pay grades. In the event of fraud and litigation, the entity cannot make claims without employment contracts," she said.
"The employees may not be able to make any claims towards the entity in the event of unfair dismissal if they do not have contracts of employment."
NSSA management's response was that all employment contracts were to be regularised by the end of last month.
Source - newsday
