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The National Social Security Authority (NSSA) recorded a major slump net profit to $32,3 million for the full year ended December 2015 from $104 million in 2014 on the back of revaluation losses, financial results released on Friday show. In the period NSSA saw its income decline to $331,2 million from $335,2 million the previous year as collections fell while investment earnings also dropped to $22,8 million from $35 million.

“The net revaluation loss on investments, property and land and buildings was $87,5 million,” said acting general manager Dr Henry Chikova. “Total assets decreased from $933,9 million in 2014 to $916 million in 2015.”

Dr Chikova said while the number of employers grew to 28 739 from 27 246, the tough operating environment saw some companies that previous contributed to NSSA either closing or sizing down operations.

“The increase (in number of employers) is not a reflection of economic growth but a fragmentation into smaller companies,” Dr Chikova said. “The sluggish economic performance characterised by a deflationary environment and retrenchment of workers following the July 17 (2015) Supreme Court ruling also meant that there were fewer employees contributing to the schemes.”

Number of pensioners shot up 6 percent to 180 289 during the period as claims and benefits paid also increased to $130 million from $125 million the previous year.

During the period, the Government appointed a new NSSA board chaired by chartered accountant, Robin Vela which was tasked with taking the pension fund out of troubled waters after its former management had lost millions of pensioners’ funds in questionable investments.

NSSA is one of the economy’s biggest institutional investors and is a major player on the Zimbabwe Stock Exchange. Mr Vela said the board was putting in place a new management team that was expected to “restore confidence in the authority and social security system.”

“Soon after its appointment, the board put a moratorium on new investment, firstly to allow for the evaluation of the existing portfolio and secondly to “draw a line in the sand” between historically delinquent decisions and a fresh dispensation expected to begin after appointment of the executives,” he said.

While NSSA hunts for a new CEO, the board has overseen appointment of new top executives such as chief investment officer, chief strategic assets officer and chief property investment officer to help restructure the pension’s funds investment portfolio. — New Ziana.