NSSF to pay 3% interest
Nov 02, 2009
THE National Social Security Fund (NSSF) will pay 3% interest rate to its contributors for the financial year 2008/2009. This follows the approval of the rate by Fred Omach, the state minister in charge of general duties. Vincent Ssekkono, the board chair
By Sylvia Juuko
THE National Social Security Fund (NSSF) will pay 3% interest rate to its contributors for the financial year 2008/2009. This follows the approval of the rate by Fred Omach, the state minister in charge of general duties. Vincent Ssekkono, the board chairman, said the they had written to the minister on September 25 to recommend the rate.
“The minister gave us a “no-objection†signed a statutory instrument before the end of September. “The 3% interest rate has been already applied to members’ accounts,†he told reporters last week.
He attributed the low interest rate to the poor performance of the fund.Ssekkono also refuted press reports that the fund had failed to publish financial statements.
“The interest rate cannot be declared before receiving financial results. It is clear that NSSF is in compliance with the law on declaration of interest for the last financial year.â€
He said the 14% declared by former managers could not be implemented because of the fund’s poor performance. “The 14% was declared by the previous board basing on unaudited accounts for 2007/2008. However, the audited accounts later revealed that the decision was ambitious and unsustainable in the long-run.â€
A recent Auditor General’s report showed that the fund made a net loss of sh50b for the year 2007/2008. This was contrary to former managing director Chandi Jamwa’s declaration in July 2008 that the fund had made a sh131b profit.
Ssekkono noted that the global economic downturn adversely affected the performance of the fund’s investments. “This affected the fund’s equity holdings and trading on the Uganda Securities Exchange. All these experienced a drastic fall in the share value,†he said.
THE National Social Security Fund (NSSF) will pay 3% interest rate to its contributors for the financial year 2008/2009. This follows the approval of the rate by Fred Omach, the state minister in charge of general duties. Vincent Ssekkono, the board chairman, said the they had written to the minister on September 25 to recommend the rate.
“The minister gave us a “no-objection†signed a statutory instrument before the end of September. “The 3% interest rate has been already applied to members’ accounts,†he told reporters last week.
He attributed the low interest rate to the poor performance of the fund.Ssekkono also refuted press reports that the fund had failed to publish financial statements.
“The interest rate cannot be declared before receiving financial results. It is clear that NSSF is in compliance with the law on declaration of interest for the last financial year.â€
He said the 14% declared by former managers could not be implemented because of the fund’s poor performance. “The 14% was declared by the previous board basing on unaudited accounts for 2007/2008. However, the audited accounts later revealed that the decision was ambitious and unsustainable in the long-run.â€
A recent Auditor General’s report showed that the fund made a net loss of sh50b for the year 2007/2008. This was contrary to former managing director Chandi Jamwa’s declaration in July 2008 that the fund had made a sh131b profit.
Ssekkono noted that the global economic downturn adversely affected the performance of the fund’s investments. “This affected the fund’s equity holdings and trading on the Uganda Securities Exchange. All these experienced a drastic fall in the share value,†he said.