nssa 20.06.11.jpgStakeholders have raised concern over the recently announced National Social Security Authority (NSSA) retrenchment loan facility after some banks turned away several contributors intending to access the loan facility on stringent collateral requirements.

When NSSA announced the new financing scheme for retrenched pension contributors, several retrenched workers received the news with great hope.

However, the retrenched workers’ joy was short lived as banks turned away most of them with the usual stringent bank collateral conditions that financial institutions require from loan seekers.

Zimbabwe Congress of Trade Unions Secretary General, Mr. Japhet Moyo said for NSSA to look for a title deed in form of a house from a retrenched worker, is tantamount to criminality saying his organisation has raised the issue with the organisation after several complaints from members.

A labour legal practitioner, Mr. Isheunesu Mataka said NSSA has to understand the plight of an average Zimbabwean worker and come up with a workable lending facility that encompasses every worker.

However, NSSA public relations manager, Mr. Philemon Shereni said his organisation is not to blame for the criteria used by banks saying the government quasi-fiscal authority has no jurisdiction on financial institutions’ vetting processes.

Mid-last month, NSSA availed a US$5 million retrenchment loan facility to be accessed through Metropolitan bank and FBC bank that is to be disbursed for amounts between US$500 to US$5 000 at 10% interest rates to retrenched NSSA contributors to start small projects.