How Nigel Chanakira Was Forced To Pay Back $500 Million to NSSA

How Nigel Chanakira was forced to Pay Back $500 Million To NSSA


How Nigel Chanakira Was Forced to pay Back NSSA $500 Million

The case was brought to the High Court by NSSA and there was a civil trial in Harare after an internal audit. Justice Bhunu awarded the claim, plus costs.

At that time, Nigel Chanakira was on the NSSA board and used his connections there to get business.

The Acting Chief Internal Auditor Who unearthed this was Mr Cosmas Chivinge


Mr Foroma for NSSA
Mr Phllips for Kingdom Stockbrokers

The defendants were Kingdom Stock Brokers and Kingdom Nominees.

Brief History of NSSA

NSSA was formed after the consolidation of the Workers’ Compensation Fund and the National Pensions Scheme. The NSSA Board has three Government representatives who are appointed by the minister of Labour and Social Welfare.

How the Fraud was done:

1. NSSA was made to buy Econet shares at 2.25 instead of 2.00
2. Upon Purchasing the shares NSSA did not get a Share Certificate
3. Kingdom told Daniel Shumba that they had sold his shares for $2.00, but at the same time told NSSA that they had bought the shares at 4,25
4. Kingdom therefore made an illegal profit of 2.25. Nigel Chanakira personally conducted the negotiations.

How the Fraud was Discovered

– Mr Chivinge asked the NSSA Share certificate from the Investments division – The Invstment Division did not have the certificate.
– The investment division claimed that the Share purchase was backed by an agreement, but did not have the agreement at hand. They only produced it after a week.
– The Share certificate did not Tally with the Agreement

The Judgement

– Kingdom was ordered to pay back Nassa the difference being the amount of $450 000 000.
– Kingdom Bank was ordered to return 8.5 Million Econet Wireless Shares
– Kingdom was ordered to pay interest
– Kingdom was ordered to pay Costs at a normal scale


– NSSA has lost a massive amount of Assets through poor Asset Management
– NSSA Internal Audit Department Needs to be very strong to support strong internal controls within the organisation
– Proper document control does not exist in NSSA. This has been the case since inception.
– NSSA Board members need to be closely monitored as they often become a source of poor governance in the company

I have attached the Judgement in the document section of website