NSSF to seek external procurement provider
Posted Friday, March 22 2013 at 02:00
NSSF’s managing director says they will now focus on expanding their opportunities in the region as the funds collections are growing.
In a bid to resolve the various procurement hurdles that have dogged numerous National Social Security Fund (NSSF) investments, the fund is the final stages of outsourcing its procurement function.
Mr Richard Byarugaba, the fund’s managing director, said the move would expedite the process of procuring service providers, especially for the multi-billion investment projects.
Speaking at the first ever annual members meeting in the fund’s 27-year history, Mr Byarugaba referred to Nsimbe, Lubowa and Temangalo housing projects as stalled projects.
“The numerous procurement processes have locked up the value, especially our real estate properties. We are now working with PPDA to procure an external procurement provider to expedite the procurement process of the stalled projects and other future projects,” he said.
Section 40 of the Public Procurement and Disposal Act (PPDA) of 2003, allows for the outsourcing of third party procurement services.
Mr Byarugaba explained that the changes in the procurement processes were necessary at a time when the fund’s monthly collections had increased to Shs50 billion.
“Internally, we are rebalancing our investment mix into a selection of short, mid and long-term investments,” he said.
“However, there is also need for us to start expanding our outlook for other opportunities in the region as the local opportunities are getting smaller and smaller for the size of the fund.”
According to recent reports, total income in the 12 months to December 2012 grew by 110 per cent to Sh194 billion, up from Shs92 billion.
Operating costs also reduced by 8 per cent from Shs28billion to Shs26 billion.