Museveni stops Shs7b annual pay to URBRA

Government has agreed with the workers representatives that while the Ministry of Finance appoints and supervises the regulatory body of the National Social Security Fund (NSSF), the Ministry of Gender, Labour and Social Development will appoint the board that will constitute workers, employers and government representatives.

During a meeting with the parliamentary Committee on Gender, Labour and Social Development, workers representatives, NSSF representatives and officials from the Ministry of Finance, Planning and Economic Development led by Minister Matia Kasaija, and Prime Minister Robinah Nabanjja, President Museveni directed that the Uganda Retirement Benefits Regulatory Authority (URBRA) immediately stop taking money from the NSSF and instead be restructured and paid by government which created it.

“This is not a negotiation issue; it is about what can safeguard this money. URBRA should be paid by government, not by workers money. URBRA is adding costs to workers. If you create an agency, pay it. They should not take any other money from NSSF. They should remove all these people from workers money,” he said.

The directive came after the workers representatives protested the annual payment of Shs7b from NSSF to URBRA for supervision of NSSF and yet the Ministry of Finance supervises URBRA.

This was the final contentious issue between the workers representatives, the Ministry of Gender, Labour and Social Development and the Ministry of Finance, Planning and Economic Development that have delayed the passing of the NSSF Bill.

The Bill seeks to enable contributors aged 45 and above have 20 percent mid-term access to their savings while the people living with disabilities access up to 50 percent of their savings if they are 40 years and above, have saved for 10 years and are out of a job or are unemployable.

Mid-term access provides for additional benefits and relief to members of the Fund before they reach the age prescribed by the law. Section 12 of the NSSF Act was amended to provide for dual supervision of the Fund. Ministry of Gender will be in charge of the social security arm of the Fund, which deals with the welfare of workers and their savings while Ministry of Finance, Planning and Economic Development will supervise the investment arm of the Fund, which deals with the business component where savings are invested in assets to generate income.

The President had initially suggested supervision by the Bank of Uganda (BoU) and the Ministry of Finance, Planning and Economic Development since they specialise in dealing with finances but BoU was ruled out technically.

On the issue of whether or not the managing director of NSSF, who is an ex-official, has a right to vote, the President agreed that the managing director can be a member but with no vote.

“The character can just sit there and talk. He can be a member but doesn’t vote. There are things which are dangerous which can either fail or kill the institution,” he said.

On the issue of mid-term access of 50 percent for persons with disabilities, the President agreed with the proposal forpeople with disabilities of 40 years and above who have saved for 10 years to access 50 percent of their saving mid-term but added that the law must be very clear on who is disabled.

The President cited an example of a councillor in Mbarara, a one Karubwende who looked perfectly normal but was representing people with disabilities. When asked what her disability was, she said she was disabled in a ‘very private place’. And was left to serve for a long time.

The NSSF managing director, Mr Richard Byarugaba, said while they have no data on people with disabilities so as not to discriminate, the numbers are not significant and members can be paid.

According to the workers records, there are 2,000,000 people saving with NSSF and less that 0.1 percent, about 20,000 people are living with disabilities.

The NSSF has grown from a paltry Shs800b with less that 500,000 savers when the NRM government came into power in 1986 to a Shs17 trillion fund with more than two million savers and growing.