Workers accuse Finance of plot to control NSSF money
Mr Wilson Owere, chairperson of National Organisation of Trade Unions
KAMPALA- Workers have accused the Parliament Committee on Finance of working to give Ministry of Finance full and firm control over National Social Security Fund (NSSF) contrary to their proposal.
Mr Wilson Owere, chairperson of National Organisation of Trade Unions (Notu) chairperson, yesterday told Daily Monitor that Finance has been seeking to regulate, appoint, control and manage the social security aspect, which by law is not their mandate.
He warned that failure by the two committees of Parliament on Gender and Finance to consider the workers’ position to have two ministries control NSSF with different and specific mandates, will encourage abuse of workers savings which they cannot accept.
Mr Owere said the Ministry of Finance should be responsible for investing the NSSF money while the Gender ministry should look at policies that govern workers and ensure their social security for the future is guaranteed.
“We are following it up. Finance wants to take over all the Bill. They want to control the money, regulate it and recruit. They want to take charge of NSSF. It is just individuals who don’t have respect for social security. If they (committees) fail to agree on what we say, there will be a national strike that will paralyse the economy. We are firm on our position. We can’t sit back and watch as our hard-earned money is played around with,” Mr Owere said in an interview.
In a separate interview at the weekend, the Finance committee chairperson, Mr Henry Musasizi, acknowledged that his committee had failed to agree with their counterparts on the Gender committee of Parliament on some proposals in the NSSF Amendment Bill.
He, however, declined to mention the contentious issues in their proposals which are yet to be tabled before Parliament.
Mr Musasizi said they (the joint Finance-Gender committee) are expected to meet the Speaker to harmonise their position, but did not state the date or give details of the contention.
“Gender and Finance committee have failed to agree. The report is ready but still contentious. The Speaker has invited us to first harmonise our positions before we can submit the report. We will meet her this week. Gender has refused to accept some proposals. I can’t reveal the details,” Mr Musasizi said.
Parliament’s committees on Gender and Finance have jointly been scrutinizing the NSSF Amendment Bill 2019.
Appearing before the joint Gender-Finance committee recently, the Uganda Retirement Benefits Regulatory Authority, Bank of Uganda and Ministry of Finance officials insisted that NSSF is a provident fund and a non-bank financial institution but not a social security fund and should be managed as such. Workers’ MP Sam Lyomoki disagreed with this proposal.
The Minister of State for Finance in charge of General Duties, Mr Gabriel Ajedra, warned the committee that splitting the oversight of a financial institution like NSSF is a recipe to disaster which puts the fund at risk.
“NSSF is such an important institution in the economy and once managed or supervised by two or three agencies will create a stalemate in decision making and therefore create supervisory loopholes. The minister responsible for Finance is responsible for formulating financial policies in the economy and overseeing their implementation,” Mr Ajedra submitted then.
However, MP Alex Ndeezi, the committee co-chair asked why Ministry of Finance had accepted to participate and issue a certificate of financial implication to their counterparts in Gender if they knew that it would be difficult to manage the NSSF.
He warned that duo oversight of the NSSF will compromise the people’s savings.
“I have a worry related to several ministers overseeing the fund. Minister [Mr Ajedra], you have been in Parliament for many years. You know how things are run. You have now said this Bill should have been presented by the Minister of Finance. But you went ahead and allowed your colleague from another ministry to move forward with this Bill. It is you who provided the certificate of financial implications,” Mr Ndeezi said.
“It now means you authorised everything. Both of you are in Cabinet. We shall go ahead and generate a report and wait for drama before Parliament. They will put you to task to explain. I was wondering if you would like some more time to consult with your colleagues in Cabinet so that we have less drama on the floor,” he added.
Government response
Mr Gabriel Ajedra said although he is bound by collective responsibility, his position has always been that NSSF be put under Ministry of Finance docket. “We had disagreements. I think the Bill as it is before you as a committee is a compromise. There is a possibility that there will be drama. But we have to manage it. The position I submit today is what I held in Cabinet. I am not going to change it,” he said. “I believe an institution such as NSSF has far-reaching implications if not properly managed. We see a potential for conflict, a potential for non-implementation. We will go back and try to see if we can reconcile that position. I will definitely bring it to the attention of the Prime Minister,” he added.
