Kabwe questions need for social security funds

By The guardian reporter

17th August 2012

‘No need for them at all’ is the statement used by shadow minister for Finance Zitto Kabwe to describe the relevance, if any, of social security funds other than provide grounds for unscrupulous organisations which have recently been sprouting faster than mushrooms after heavy rains.

This opinion is shared by Kisesa MP Luhaga Mpina (CCM) who faulted venialities of the social security funds stressing that there is need for the Planning Commission to launch an intense examination as to their validity.

According to the legislator, the government has been spending more than 1.7trn/ a year to support social security institutions in the country and it is about time they were reviewed.

Kabwe who is also Kigoma-North MP, (CHADEMA) urged the government to set a mechanism that will control the number and even the very operations of social security institutions in the country. Kabwe, who is in favor of capping government spending/outlays, made the call yesterday in Dodoma when tabling alternative 2012/13 budget estimates for the ministry of finance.

The minister believes there is surplus financing of these funds and the availing such important information before the Parliamentary Public Organisation Committee, the public and the National Assembly will enable the government determine the excess financial capacity found in each institution.

At the moment social security funds in the country are the National Social Security Fund (NSSF), Parastatal Pension Fund (PPF), Local Authorities Pension Fund (LAPF), Public Service Pension Fund (PSPF), and the Government Employees Provident Fund (GEPF).

The shadow minister is calling upon clear performance review system to monitor and assess the liquidity of the social security funds and their investments and risk management.

In fact, for efficiency, Kabwe had this proposal for the government “…split NSSF and PPF to serve in the private and informal sectors then commission PSPF, LAPF and GEPF specific for civil servants.

SOURCE: THE GUARDIAN