Mkullo: Government to appoint Social Security Funds watchdog CEO soon

By The guardian reporter
5th January 2010
Minister of Finance and Economics Affairs, Mustafa Mkulo

The appointment of the Chief Executive Officer (CEO) for Tanzania’s Social Security Regulatory Authority (SSRA) is to be announced anytime from now, the Minister of Finance and Economics Affairs, Mustafa Mkulo told The Guardian yesterday.

The finance minister was not sure, however if the proposed name for appointment had been sent to State House for approval.

He clarified that his role in the soon to be established SSRA will be 40 per cent with the role of the Minister for Labor and Youth development taking the lead role of 60 per cent.

The proposed name of the appointee in this arrangement is supposed to be sent to State House by the Minister for Labour and Youth Development, Prof Juma Kapuya.

Minister Kapuya hung up his phone when contacted to talk about the appointment yesterday. The International Monetary Fund (IMF) has advised Tanzania to speed up formation of the Social Security Regulatory Authority to enhance growth of the industry and curb misuse of workers' savings, the local media reported yesterday.

In its response to a letter of intent by the Minister of Finance and Economic Affairs, Mr Mustafa Mkulo, the IMF said SSRA was crucial in regulating pensions and other related services.

"Beyond the banking system, continued absence of social security regulator remains a significant weakness in the economy," reads part of the IMF's statement.

IMF said although Tanzania's financial system has not been directly affected by the global crisis, supervision should remain vigilant and gaps in the framework plugged.

Minister Mkulo said in his letter of intent to IMF in November, last year that investment guidelines for the pension funds, incorporating views from stakeholders, had been drafted and would soon become operational.

"A budget allocation for the pension regulator has been provided and new actuarial reviews of each of the pension funds are underway," he said.

The Minister for Labour, Employment and Youth Development, Prof Juma Kapuya, told the 'Daily News' recently that the recruitment of the management of regulator was still on, but was not sure as to when the chief executive would be picked.

"We have finished recruitment of some workers in some levels, but the decision on the chief executive is beyond my jurisdiction," he noted.

The law establishing an independent regulator of social security schemes was enacted in 2008.

The regulator will help pension funds to operate more efficiently and ensure their members are the main beneficiaries of respective schemes.

The government expects that the number of employees joining the social security schemes will increase, when their operations are regulated.

The Controller and Auditor General (CAG) has often in his annual reports criticised some pension funds for mismanaging public funds.

SOURCE: THE GUARDIAN