Govt debts to pension funds raise concern

Acting Controller and Auditor General Athuman Selemani speaks before the Parliamentary Public Account Committee (PAC) in Dar es Salaam yesterday. Right is Social Security Regulatory Authority director general Irene Isaka. PHOTO | VENANCE NESTORY 

By Frank Kimboy, The Citizen Reporter

In Summary

• The committee summoned the ministry of Finance’s permanent secretary, Dr Servacius Likwilile, Social Security Regulatory Authority director general Irene Isaka, the CAG, Bank of Tanzania, as well as directors general of social security funds to discuss government debts to social security funds

Dar es Salaam. The Parliamentary Public Accounts Committee (PAC) has expressed its concern over the outstanding debt the government owes social security funds after it learnt that government debts stand at Sh8.43 trillion.

This came after the acting Controller and Auditor General, Mr Athuman Selemani, told the committee that the government debt to social security funds amounted to Sh8.43 trillion. The committee summoned the ministry of Finance’s permanent secretary, Dr Servacius Likwilile, Social Security Regulatory Authority director general Irene Isaka, the CAG, Bank of Tanzania, as well as directors general of social security funds to discuss government debts to social security funds.

According to Mr Selemani, the amount included funds, which the government borrowed from social security organisations to implement various development projects and Sh7.06 trillion that the government owes the Public Service Pension Fund (PSPF) due to the accumulation of unremitted members’ contributions since its establishment in 1999.

Mr Selemani told the committee that the government had so far borrowed a total of Sh1.37 trillion from social security funds to implement various development projects.

According to Selemani, the amount was borrowed from all social security funds.

Explaining the debt, Mr Selemani said the government owed the Parastatal Pensions Fund (PPF) Sh192 billion while it owed the National Social Security Fund (NSSF) Sh467 billion. National Health Insurance Fund (NHIF) is owed Sh107 billion by the government while PSPF is owed Sh429 billion.  Other pension funds which are owed by the government are Local Authorities Pension Fund (LAPF) and Government Employees Pension Fund (GEPF) which are owed Sh170 billion and Sh7.06 billion respectively.  But the figure is likely to rise as Mr Selemani said the amount did not include government employees’ contributions which haven’t been submitted to social security funds