IGG advises NSSF managers on funds
Posted Monday, May 5 2014 at 01:00
Fund had apparently, in its interest, invested in Umeme.
The Inspector General of Government (IGG) has advised National Social Security Fund (NSSF) managers to take caution on every investment the Fund indulges in. This follows The IGG report on NSSF’s decision to invest in Umeme shares.
“The decision by NSSF management and the board to invest in the Umeme IPO was in the interest of NSSF. The decision by NSSF Managers and the board to invest in Umeme was made in consultation with stakeholders. Notwithstanding that the investment was made contrary to Article 119; it generated revenue for the Fund to the tune of Shs1.9 billion in dividends,” Irene Mulyagonja the IGG said.
Umeme market share value on the Uganda Securities Exchange also appreciated from the initial price, giving NSSF potential for capital gains in case of sales of shares.
According to the report, NSSF’s management has been vigilant when investing in member funds.
Ms Geraldine Ssali Busuulwa, the acting managing director NSSF said: “We are in full agreement with the IGG regarding the need for the Fund to have enabling legal framework to make quick decisions on investments for the benefit of the Fund, its members and the country at large.”
She also asserted that the Fund’s staff are a key factor in fulfilling its promise to members to create value and pay a competitive return and therefore their wellbeing should never be compromised, something which the Inspector General of Government agreed with regard to provision of a safe working environment.