NSSF contributors access to mid-term savings can wait

National Social Security Fund (NSSF) headquarters in Kampala.PHOTO/FILE.

Sections of the public who are rebuking the Minister of Finance, Mr Matia Kashaija,for advising the

President not to sign the amendment of the NSSF Act cap 222 are also subjective and wrong.

This is because the  minister, as a custodian  of the Fund,   is doing so in good faith.  Mr Kasaija’s role is to ensure that the Fund he is mandated to oversee is financially healthy. 

I also believe that by the time he came out to advise the President, he had consulted the technical people to ascertain the viability and financial implication of mid-term access to the Fund as week as the economy.

In the same vein, there should be a careful study about the impact of the Fund to the operation of Bank of Uganda monetary policy given that NSSF is one of the biggest buyer of securities. In a situation that they would like to liquidate some of the assets to raise money to meet the unplanned claims, the spillover effect should not be destructive.

Another important thing to note is that since the contributors are in dire need of money due to Covid-19 induced distress, it means that even the estimated NSSF revenues have also dwindled although we don’t know the magnitude yet, which calls for due diligence.

However, the section of the Bill that allows a person with disability, lacks gainful employment or fails to generate income and unable to make contribution to the Fund be allowed to access up to 75 per cent of their contribution is a viable decision that will also promote the rights of people with disabilities. 

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However, if this is to be implemented this year, government has to first hire the services of independent auditors to ascertain whether it is financially healthy given the fact that most of the profitable Assets that fetch a lot of revenues, including real estate for the Fund, seem to be affected much by negative effects of the pandemic.

The Covid-19 pandemic has caused the value of all business assets to decline globally.

Even us, we are protecting the sanctity of the Fund because it is the mirror of the proper functioning of the economy.  

NSSF is not like the central bank which can be recapitalised, So a lot of care has to be taken so that they can preserve the interest of their clients who in most cases are their contributors.  

Ben Ssebuguzi, 
ssebuguziben28@gmail.com