Run pension funds well

   

Monday, 21 January 2013 12:03

There has been concern that pension funds undertake to finance government projects for political motives rather than care for members’ economic benefits.Costly projects such the Machinga Complex have turned out to be white elephants. The charge is that members are taken for a ride.It is sad that cavalier attitude towards contributors has been going on for so long. Powerful politicians seem to regard pension funds as cash cows, the same way they viewed state firms, most of whichhave since collapsed due to mismanagement. More shocking is last week’s revelation by the Parliamentary Public Organisations Accounts Committee (Poac) that social security funds were not bothering to enter into contracts with government in financing projects. Poac chairman Zitto Kabwe said Sh1 trillion was issued for projects without bothering to havepacts.That is a slap in the face for contributors, a mark of impunity! We support Poac for ordering such organisations to stop any conduct that endangers members’ money.But orders and warnings aren’t enough;those involved inthe fraudulent undertakings should be punished.  Pension funds shouldonly be invested in economically viable projects.Primary beneficiaries of pension funds must be the contributors and all information about such organisations should be made open.