PTUZ interrogates NSSA over bank formation

Progressive Teachers Union of Zimbabwe (PTUZ) has interrogated the National Social Security Authority (NSSA) following reports that the authority will establish a bank which will provide housing scheme for civil servants.

PTUZ said it has have learnt that NSSA will establish a bank – the Social Security Building Society Bank of Zimbabwe to be operational by August 2015.

"We are told the bank will offer affordable housing loans to civil servants and low income earners. In today's Herald our sister Teacher Unions are quoted demanding seats on the Board of Directors. There are several issues we need to interrogate," said the PTUZ.

"Were the employees involved in the mooting of this idea save for the 10 April meeting where 3 organisations represented all Civil Servants masquerading as APEX representatives.(Surely we now know why some of us were not invited to this meeting.)? Is this part of the non monetary incentives that we have been clamouring for , for the past five years.? Is it really necessary for NSSA to establish a new Bank?(It's a fact Zimbabwe has more banks than it needs. Lately several banks have been forced to close and several depositors have lost their investments) what has happened to several NSSA investments and projects which never saw the light of day or simply became white elephants?"

PTUZ asked as to who who is injecting the $5 million seed Capital into this project?.

"Who is going to fund the branding, acquisition of new banking halls, rentals, vehicles, ICT software and equipment, furniture and equipment, Uniforms for staff etc.?" asked PTUZ. "What is affordable Housing? Why is Government seeking to perpetuate a Loans-Chimbadzo culture? NSSA is a membership organisation, What will happen to the contributor's funds if this vehicle collapses?"

PTUZ said there are several things we are unclear about that need serious stakeholder involvement . "While some of our sister Unions are demanding seats on the Board of Directors we view it differently. We wonder how the Board can guarantee Civil Servants getting the said Loans," said PTUZ. "We also wonder how the Board of Directors will influence (1)the terms of reference of this bank(terms of reference crafted in their absence) , How they can influence the NSSA Act and its broader scope."

The teacher's union said its well considered view is that NSSA will spend a lot of money in hiring managers, banking personnel, ICT staff and equipment and banking halls branding which in our view will consume the greater chunk of the so called capital injection. "We are also aware that Government has huge stakes in many banks so why not use already existing infrastructures to offer the same service," said PTUZ. "After all the intended beneficiaries are already banking with those same institutions. For the benefit of many this is not the first time Government has initiated such a programme. Only a few years back Government initiated a US $6 million Housing Loan Scheme under Giles Mutsekwa of the MDC-T and our records show that less than 13 teachers benefited.(Don't forget the Gwindingwi Housing Scheme of Aeneas Chigwedere back in the 90s)."

The PTUZ said while it's not all doom and gloom Government must be honest and transparent . We must remind them that we are not gullible . "The housing we are proposing does not involve Government dishing out any loans," said PTUZ.

"All we are demanding is Government to give us small pieces of serviced land which they can peg against our salaries and the rest we do ourselves. To our sister Unions we say seating on the Board is not the solution after all many of the people we are seconding are neither technical nor are they astute enough to understand real Boardroom Politics. A lot more still needs to be done. There is need to involve all workers in the Public and Private Sector so that all workers contributing to NSSA benefit."