Insurance, pension funds probe set up
President Mugabe shares a lighter moment with chairperson of the commission appointed to probe insurance contributions and pension benefits, Retired Judge Justice George Smith, while commissioner Violet Mutandwa looks on
Farirai Machivenyika and Masline Mavudzi—
President Mugabe yesterday swore in an eight-member commission to probe the conversion process for insurance contributions and pension benefits when the country dollarised in 2009. This follows concerns raised by policyholders and pensioners that they had been short-changed on their investments in the changeover period on the pretext that their contributions had been eroded by inflation.
Under its terms of reference, if it is established that pension fund members or insurance policyholders were materially prejudiced, the commission will establish a mechanism for appropriate compensation.
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The commission is chaired by retired judge Justice George Smith and members took their oaths of office at a ceremony held at State House.
Finance and Economic Development Minister Patrick Chinamasa also attended the event.
The commission was set up in terms of the Commission of Inquiries Act.
Speaking after the swearing in ceremony, Justice Smith said they expected to start their work next week.
“The time-frame for us to complete the inquiries is nine months unless it is extended. We will be getting information from various stakeholders and then consider what is appropriate. So we will be meeting next week to plot our way forward,” he said.
Minister Chinamasa said the findings of the inquiry would help in boosting confidence in the sector.
“There were concerns raised by pensioners and insurance holders who felt strongly that in the conversion process from the Zimbabwe dollar to the US dollar, they lost value.
“So this commission is to inquire whether there is merit in those concerns. This is meant to restore confidence in the insurance and pensions industries,” Minister Chinamasa said.
He said members of the commission were drawn from recommendations by the industry.
“As you know, I am new in this portfolio so I had to scout for recommendations from industry. I went largely with the recommendations from industry. We have tried to choose people with intimate knowledge of the industry, but who have no vested interests,” Minister Chinamasa said.
Among the commission’s terms of reference is the need to establish the total value of pensions as at December 31, 2006 and as at March 31, 2009.
It will also seek to establish the nature, type and value of pension fund assets acquired as at December 31, 2006 and March 31, 2009.
The commission will also investigate the role of pension funds and fund managers during the conversion period and also the process, methods and criteria used to convert values from Zimbabwe dollars to US dollars.
They will also identify appropriate criteria for assessing whether any pension fund members or insurance policyholders were prejudiced.
Based on the findings, they will establish the extent of the prejudice.
Other members of the commission are Brains Muchemwa, Itai Chirume, Martin Tarusenga, Violet Mutandwa, Dr Godfrey Kanyenze, George Dikinya and Anesu Daka.