Members of Workers’ Union during a meeting. The recovered money has
boosted the fund’s financial muscle. PHOTO BY ABUBAKER LUBOWA
By Richard Byarugaba
In Summary
Finally, I wish to say that all the actions,
decisions and books of accounts of the Fund are audited by the Auditor
General and for the last two years running, an unqualified opinion has
been rendered. This is a very clear sign of a secure control
environment.
Last Friday, the Daily Monitor ran on their
front page, a story titled, “IGG opens fresh graft investigation at
NSSF”. The story was apparently based on a dossier, sent to the
Inspector General of Government by an anonymous whistle-blower.
First of all, I wish to say that whereas the
decisions mentioned in the story were taken by the Fund, after due
processes were followed, the spirit within which they were reported is
totally distorted. I have also had a chance to look at the said dossier
presented to the IGG and as the Fund managing director, I can
unequivocally say the issues raised are totally untrue and built either
on sheer malice or ignorance of the workings of the Fund.
Whereas the whistle-blower or their intentions
remain anonymous, I am particularly perturbed that the Daily Monitor
decided to give a lot of undue attention to the whistle-blower’s
allegation, and ignored a detailed explanation we provided, the result
of which was a misleading story, that has caused unnecessary anxiety
amongst all stakeholders, as well as damaged the Fund’s revived image.
I am no media expert, but I find it queer that a
respected media house prefers to give more credibility, authority and
credence to an anonymous individual as opposed to the Fund’s which has
always responded to media enquiries. Ironically, this article was
published on the World Press Freedom Day, when media professionals are
supposed to reflect on press freedom and professional ethics.
It is critical therefore that as professional
journalists, you would expect one to undertake investigations rather
than rely on un-researched anonymous messages. Wouldn’t it have been
better that a journalist gave the affected institution the benefit of
doubt and reported in a more balanced manner? The responses from the
Fund appeared at the end of the story by which time the perception of
the reader would have been formed.
However, we also need to take cognisance of the
fact that such allegations are not new. For example in 2012, a whistle-
blower reported to the IGG alleging that Fund managers were colluding
with employers to defraud workers money. We can confirm that the IGG
investigated the allegations and released a report clearing the Fund of
any wrongdoing. If the media then, had given more credibility to the
anonymous individual before the IGG’s investigation, they would have
hurt the brand, and yet it is a well-known fact that clarifications do
not have the ability to clear the negative impact or damage caused by
the original story!
Media ethics and fairness aside, I wish to
reassure Fund members that we shall not be deterred, and are committed
to securing a better future for you by providing quality products, great
customer service and offering competitive returns in a transparent and
efficient environment. In fact many of the decisions we took, that were
mentioned in the story, were all aimed at getting the best value for
members.
For example, the whistle-blower makes mention of
the Fund’s investment into buying Umeme shares and casts this decision
in bad light, yet there is a very positive story that was intentionally
ignored to serve the “purpose” of the whistle blower. The investment is
already paying off. The shares which were bought at Shs275, today they
are selling at Shs345.This means that the value of the investment in
Umeme has grown by 24.5 per cent in just six months. In absolute terms,
the investment has grown by Shs9.2 billion from the initial Shs36.1
billion invested.
In addition a dividend of Shs15 per share has been declared resulting into Shs1.9 billion cash payment to our members.
Overall, members will agree that the Fund has
improved across all spheres. For example, customer satisfaction has
grown from 41 per cent to 76 per cent, because of improving turnaround
time and more channels of delivery.
Member savings too have been preserved; interest paid to members has grown from three per cent to 10 per cent, mainly driven by a growing asset base coupled with effective asset management and prudent cost control. Right now, our most immediate focus is to grow customer satisfaction to above 80 per cent, but most importantly, stabilise interest to members at two per cent above 10 year average inflation rate.
Member savings too have been preserved; interest paid to members has grown from three per cent to 10 per cent, mainly driven by a growing asset base coupled with effective asset management and prudent cost control. Right now, our most immediate focus is to grow customer satisfaction to above 80 per cent, but most importantly, stabilise interest to members at two per cent above 10 year average inflation rate.
Finally, I wish to say that all the actions,
decisions and books of accounts of the Fund are audited by the Auditor
General and for the last two years running, an unqualified opinion has
been rendered. This is a very clear sign of a secure control
environment.
We commit to remain a transparent and accountable
institution, and shall cooperate with the IGG, should they choose to
commence any investigations.
Mr Byarugaba is the managing director, National Social Security Fund.
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