Nssa fingered in Fidelity Life chaos

HARARE - The National Social Security Authority (Nssa) has been fingered in yet more alleged corporate malpractices, this time at the previously stable insurance provider Fidelity Life Assurance of Zimbabwe (Fidelity), which is on the verge of imploding.

Well-placed sources told the Daily News at the weekend that the statutory social security body was “inexplicably” ganging up with Fidelity’s management to remove the insurers’ board which had unearthed a number of alleged irregularities in insider loans and unapproved executive remuneration running into tens of thousands of dollars over the past few months.

“Something stinks to high heaven here. It cannot be right that Nssa should be protecting and encouraging Fidelity’s management to destroy the company, including shareholders’ and policy holders’ value.

“The fact of the matter is that there has for a long time been very poor corporate governance in the company, that is until the current competent board was put into place, and which has worked hard to oversee the work of the management team.

“Sadly, our top executives, who for long were used to acting with impugnity, don’t like this and are now working in cahoots with the new leaders at Nssa to remove this board. It’s a tragedy,” one of the concerned insiders said, calling for a forensic audit into the affairs of Fidelity.

Fidelity used to be a subsidiary of Zimre Holdings until the latter lost its majority shareholding in the company to Nssa in a rights issue.

“This board that Nssa inexplicably wants out has kept a watchful eye on management’s performance and behaviour, and has ensured that shareholders’ and policyholders’ interests are protected.

“It will be a tragedy of monumental proportions if this Nssa madness is not stopped by among others the Insurance and Pensions Commission and the Securities Exchange Commission,” the whistle blower said.

The well-placed source said Fidelity’s board of directors, which is chaired by the highly-regarded and retired banker, Lawrence Tamayi, had instituted a number of much-needed corporate governance measures at the company, aimed at improving both board and management accountability.

“The board was clear that the Zimre legacy in terms of weak corporate governance could not be allowed to carry on, and hence its drive to redirect the business on the right path.

“It would appear that this drive has not gone down well, particularly with the CEO Simon Chapereka,” the source said, giving examples of Fidelity’s poor corporate governance which the board had rectified that included the alleged unearthing of unauthorised loans to Chapereka in the form of insider loans from subsidiary companies, the amassing of properties in the form of stands without executives making any repayments, and executives paying themselves board fees in addition to their salaries.

Apparently, Chapereka was also a member of both the company’s audit and human resources and nomination committees for many years, giving him significant powers to not only make board appointments, but also to award himself “irregular” payments and benefits.

“All this has been rectified by the board. Staff were also always under threat until recently, with a number of senior managers being fired left, right and centre for no good reason, as those at the top engaged in illegal dealings including amassing shares and colluding with suppliers.

“Our fear is that the push to kick out key members of the board, including the chairman, is a sinister ploy to tilt the ship backwards, and the motives of Nssa’s acting general manager, Hashmon Matemera, in all this are at best very unclear,” the source added.

The National Economic Conduct Inspectorate is currently looking into the circumstances surrounding the Zimre takeover, with some Nssa executives and directors under the spotlight.

Efforts to get a comment from Nssa, Fidelity and Chapereka  were unsuccessful last night.

Comments (16)

Lawrence Tamayi was appointed to chair the board because of his close links of the suspended NSSA executive management. I understand he was fronting the outgoing NSSA executive.

Sandra - 7 December 2015

Lawrence Tamayi was hand picked by NSSA's executive management to head the defunct Capital Bank, initially as a managing consultant and subsequently as the managing director. He was used by the same people to get rid of the Board Chairman, Joseph Kanyekanye. Kanyekakanye was replaced as Board chairman by another bootlicker. of Matiza, Onisai Machiridza.

Sandra - 7 December 2015

The the whistle blower could be Lawrence Tamayi, given his close ties with Daily News. I am surprised the reporters of Daily News failed comments from NSSA, which a full fledged Public Affairs Depatment.

Sandra - 7 December 2015

The whistle blower could be Lawrence Tamayi, himself, given his close ties with the Daily News. I am surprised the reporters of Daily News failed to get comments from the three major actors in its story including NSSA, which has a full fledged Public Affairs Department.

Sandra - 7 December 2015

Why not investigate and see who is lying? Tamayi, NSSA or the company executives? What I know is that there is no smoke without fire!

soko murehwa - 7 December 2015

Sister Sandra above appears pumped up about the goings-on at Fidelity given how many postings she has made already on this story. Maybe she could enlighten some of us who are not well-informed as to whether the allegations in the story are true or not, not just the situation of some of the personalities involved. My own view is that if the allegations are true, then there is a big problem in the company.

Mercy - 7 December 2015

Is Sandra fronting Chapereka who is alleged to be protected from acts of defrauding the company by Nssa. This is now interesting. Daily News, please tell as more and Tell It As It Is. We want the truth to be revealed to the public so that some of these Sandra's are put to shame. Mbava muCorporate world similar to Cashbert Dube dzakawanda, they have just not been caught

Fungi - 8 December 2015

Ah. This sounds interesting. Saka kune nyaya . Vana Sandra seem to be in a panic mode. Why not tell the public kuti ichokwadi here. Mercy , you are correct , there is no smoke without fire. Let's hear more Daily News

Andy - 8 December 2015

Daily News, please help us. As employees, we could not and you cannot say" bhufu". Chapereka has been for years abusing this company like his personal tool. Please help us. Ko ivo veNssa, vari kuti ndicho chii chavari kuita. But, you can understand , mbava dzinodziya moto dzose . Handiti Matemera ndozvaaka dzingirwa ku BANC ABC

Catch Him - 8 December 2015

I don't understand the attach by Sandra on this Tamayi. Kana kune umbava, asi Sandra ndiwe umwe wacho. Ma companies are collapsing because of theft, so when the media picks it up, they must tell us so that it's dealt with accordingly . Kanyekanye's history is well documented . Look at what he was doing at that timber company. It appears they are friends , with this Fidelity , Chapereka. Mbava, mbava

Catch Him - 8 December 2015

His Excellence The President Comrade R. Mugabe has said no to corruption. Comrade Matemera , marasika gwara remusangano kana muchivharidzira kuti vari kuita corruption vasa itwe dealt with. I know corrupt people don't like the media when they are exposed. But, comrade Matemera, please don't tarnish Nssa image supporting wrong things. I know you are a ZANU PF cadre saka respect his Excellence

Malema - 8 December 2015

Ha! Sister Sandra must be Smelly Small House yaChapereka, who is worried kuti, mari haichauyi ku small house . Shame!!!

Satah - 8 December 2015

Thank you Lawrence Tamayi for working so hard to bring sanity at the renowned insurer. For beginners, Fidelity is a listed company and must not be run like a vendor's table at Mupedzanhamo. There is need for ethics and proper policies to prevail. We really want you DAILY NEWS to give us a followup story before the story dies a natural death. I just pray that none of you at daily news will get paid heavily from the alleged stolen money to sweep facts under the carpet. IPEC, how can this happen under your nose. Did you get paid. Daily news, give us more. Tamayi, am shuwa hama dzako dzemu board hadzisi kurara nenyaya iyi dziri kun'anga nema porofita, but dont worry, the good Lord will protect you. If you fail to whip them into line, they will whip you!! so watch out.

Chawakadya Chamuka - 8 December 2015

zimre group yakalootwa vakomana

zim pipo - 9 December 2015

aj nduna, s tembo, t nyika, b khumalo, g muradzikwa, s chapereka

zim pipo - 9 December 2015

There was a follow-up story on 24th December, Daily News please post it on the net...........

Policyholder - 31 December 2015

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