Zimbabwe moves towards state-owned mortgage lender, appoints board that includes Mnangagwa’s brother

HARARE,– Government has appointed a board for the National Social Security Authority (NSSA)’s proposed social security building society in a move to strengthen the authority’s investment portfolio of the following the collapse of its merchant bank.

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NSSA was recently granted a licence to operate the mortgage lender, which will be a successor to the failed Capital Bank whose operating licence was cancelled last June.

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The appointment of the nine directors will pave way for the appointment of a new management team. The board will be led by chairman Gamaliel Mhofu Bwanya whose deputy will be Precious Sibiya.

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Other members include David Mnangagwa; Jean Maguranyanga; Nimrod Chiminya; Tinotenda Kambasha; Sibusisiwe Bango; Josephine Ncube and James Matiza.

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“We have met all the other requirements for the building society licence,” labour minister Prisca Mupfumira told a press briefing on Monday.

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She said $50 million had been set aside for the setting up of the building society, adding that a new NSSA board, which will be announced in a fortnight, would allocate the funds to the financial institution.

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NSSA is a significant shareholder in FBC Bank, but it’s dalliance with Capital Bank failed dismally when it was shut down last year.

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The bank was deemed an unsafe and financially, which its existence characterised by undercapitalisation, persistent losses, chronic liquidity challenges and inordinately high levels of non-performing loans.

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The bank was part of Patterson Timba’s Renaissance Holdings, which collapsed in 2011 in a cloud of poor corporate governance allegations.

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NSSA, a statutory pension scheme set up in 1989 to which all employees make contributions, took a controlling 84 percent stake in the bank in 2012 after converting its $8, 5 million deposit into equity and re-branded it. – The Source