Government to issue $69 million TBs to settle NSSA bill

Government to issue $69 million TBs to settle NSSA bill

HARARE, June 28 (The Source) – Government is to issue $69 million worth of Treasury Bills (TBs) to the National Social Security Authority (NSSA) to settle part of outstanding pension contributions from state workers.

Government, which employs about 500,000 workers, owed NSSA close to $92 million in unremitted pensions from its workers as at December 31, 2015, according to official documents released last week.

The bulk of the non-remitted pensions relate to the employer’s portion of the pensions.

A report presented by auditor general, Mildred Chiri to Finance Minister, Patrick Chinamasa last week showed that the government auditor had raised concerns about the outstanding pensions.

She warned that the outstanding pensions would affect NSSA’s operations and investments.

Apart from State workers, NSSA is also owed millions of dollars in non-remitted pensions by companies in the private sector, where frail companies are battling to survive, while thousands have closed due to a deteriorating economic climate.

NSSA management said engagements with government to address the pensions were underway, with government undertaking in April to issues TBs.

“Engagements (have been) held at the highest level including our parent ministry,” NSSA management told Chiri.

“Government has undertaken to issue NSSA an initial $69 million worth of TBs to extinguish the debt balance as at 31 December 2015. The undertaking was made at a meeting held on the 28th April 2016. At the same time government is now regularly paying the employee portion every month. Engagements are ongoing for government to be current with employer’s portion as well,” said NSSA.

A review of the authority’s contribution debtor’s book revealed that a substantial amount was owed by the government and public entities.

“The authority is deprived of funds for its daily operations and investment opportunities,” noted Chiri.

  • Andrew

    so we borrow to pay back a debt