MP Lyomoki pushes for loans in new NSSF law

Workers’ Member of Parliament, Dr Sam Lyomoki, wants Parliament to amend the current National Social Security Fund (NSSF) law to provide for a loan facility for members who have continuously saved with the Fund for 10 years.

The Bill also under Clause 9, introduces a new subsection for 27(a) to provide for a loan facility that shall be limited for purposes of education, mortgage, health for person, spouse or children and for any other purposes the NSSF Board may consider appropriate.
Dr Lyomoki, among other provisions in the Bill, seeks to add what is termed as “unemployment benefits” to open up access to savings for persons who have lost their jobs and have failed to find employment elsewhere for two years.

Dr Lyomoki has since 2009 attempted to table a private members Bill to amend the NSSF Act, 1985, in vain.
But the lawmaker cites the decade-long delay by the government to amend the NSSF Act as a major driver for his Bill.
He wants to achieve his pursuit through a private members Bill, which awaits the go-ahead from Parliament. He also wants Parliament to trim government’s direct involvement in the financial operations of NSSF.

In the principal Act, the minister responsible for social security (Labour) is mandated as a superior organ to participate in key decisions of the Fund such as investment, borrowing and auditing.
Section 30 of the Principle Act for instance provides that “all monies in the Fund, including the reserve account, which are not for the time being required to be applied for the purpose of the Fund shall be invested in such investments as may be determined by the board in consultation with the minister.”

Similarly, Section 31 also provides that “the board may, subject to prior approval of the minister, borrow money by way of loan or overdraft for the purpose of its obligations or discharging any of its functions under this Act, upon such security and such terms and conditions relating to the repayment of the principal and the payment of interest as the board deems fit.”
But Dr Lyomoki, in his draft Bill attached to his motion, wants the minister’s functions now taken over by the board, which shall operate in consultation with the federation of worker and worker’s organisations, leaving the minister with only policy related functions.

Objects of the Bill
Dr Lyomoki also presented four objects of the Bill. One is to “to establish and enhance social protection and management framework to achieve efficient and transparent administration of the Fund. Two, to streamline the appointment and tenure of the board and to allow participation of the members of the Fund by providing for the right of recalling board members.

The MP also wants to streamline the benefits regime under the Act by providing for additional benefits, including maternity, unemployment and other specified benefits, and, to provide for [the] proper management standards for the efficient custody and investment of the Fund.

The motion is seconded by Workers MP Agnes Kunihira and Ms Margaret Rwabushaija as well as Manjiya County MP John Baptist Nambeshe.
Asked to summarise his Bill, Dr Lyomoki said the Bill will seek “to streamline the management of the Fund and to expand the scope of coverage and benefits, in particular, to provide for representation of workers, changes in appointment of the board, changes in composition of the board, limitation on membership to the Fund, change in control of expenditure and investments and change in the fines and penalties.”

GOVERNMENT INTERVENES
Meanwhile, the Minister of State for Youth and Children Affairs, Ms Florence Nakiwala Kiyingi, on Wednesday moved in to take over presentation of the Bill. She said the government was ready to present its Bill for first reading within one week, to which Mr Lyomoki conceded. But Deputy Speaker Jacob Oulanyah warned that once government fails on her commitment, there will be no hesitation granting the Workers’ MP leave to present his Bill.

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