BOU begins to supervise NSSF
Jan 10, 2005
THE Central Bank has started supervising the operations of National Social Security Fund (NSSF), The New Vision has learnt.
By Emmy Allio and Fortunate Ahimbisibwe
THE Central Bank has started supervising the operations of National Social Security Fund (NSSF), The New Vision has learnt.
Top officials from the Bank of Uganda (BOU), ministry of finance and NSSF management, on Friday held a meeting at Workers’ House to discuss the development.
The meeting also discussed the possible transfer of NSSF’s sh414b to the central bank.
Sources said two senior officials from the Bank of Uganda will have a desk at the NSSF head office, to oversee the management and operations of the fund.
Acting NSSF managing director Martin Bandebire said, “We discussed various issues including their role in the running of NSSF. It is also true that some officials from the Bank of Uganda will have desks here,†he said.
Bandebire also said finance minister Gerald Ssendaula was yet to appoint a new board of directors.
Sources in BOU said the supervision of NSSF operations included monitoring the usage of funds and projects of the pensions body.
“It is for purposes of transparency and encouraging only viable projects to be pursued,†a source said. The source said an amendment to the NSSF statute was also being pursued.
The government in July last year wrote to the International Monetary Fund (IMF) and promised to repeal the NSSF statute to pave way for BOU supervision.
Ssendaula’s July 13, 2004 letter to IMF said the Government had fulfiled the IMF’s condition to transfer NSSF from the labour to the finance ministry.
The minister promised speedy reform of the pension system to generate substantial long-term savings for private sector capital formation.
President Yoweri Museveni, who ordered the transfer in September last year, also suspended the NSSF board and its top managers over corruption.
THE Central Bank has started supervising the operations of National Social Security Fund (NSSF), The New Vision has learnt.
Top officials from the Bank of Uganda (BOU), ministry of finance and NSSF management, on Friday held a meeting at Workers’ House to discuss the development.
The meeting also discussed the possible transfer of NSSF’s sh414b to the central bank.
Sources said two senior officials from the Bank of Uganda will have a desk at the NSSF head office, to oversee the management and operations of the fund.
Acting NSSF managing director Martin Bandebire said, “We discussed various issues including their role in the running of NSSF. It is also true that some officials from the Bank of Uganda will have desks here,†he said.
Bandebire also said finance minister Gerald Ssendaula was yet to appoint a new board of directors.
Sources in BOU said the supervision of NSSF operations included monitoring the usage of funds and projects of the pensions body.
“It is for purposes of transparency and encouraging only viable projects to be pursued,†a source said. The source said an amendment to the NSSF statute was also being pursued.
The government in July last year wrote to the International Monetary Fund (IMF) and promised to repeal the NSSF statute to pave way for BOU supervision.
Ssendaula’s July 13, 2004 letter to IMF said the Government had fulfiled the IMF’s condition to transfer NSSF from the labour to the finance ministry.
The minister promised speedy reform of the pension system to generate substantial long-term savings for private sector capital formation.
President Yoweri Museveni, who ordered the transfer in September last year, also suspended the NSSF board and its top managers over corruption.