Workers call off NSSF demo
Sep 28, 2008
THE workers’ leaders yesterday called off a country-wide demonstration against alleged mismanagement of the National Social Security Fund (NSSF), scheduled for this morning, after the Government assured them it would give in to most of their demands.
By Milton Olupot
THE workers’ leaders yesterday called off a country-wide demonstration against alleged mismanagement of the National Social Security Fund (NSSF), scheduled for this morning, after the Government assured them it would give in to most of their demands.
Workers’ MP Sam Lyomoki announced at a press conference at the Media Centre yesterday that the Government had agreed to send the NSSF top management on leave while investigations into the Temangalo land deal were going on.
A meeting between finance minister Ezra Suruma, Vice-President Gilbert Bukenya and the workers also agreed to increase the number of workers’ representatives on the board to five, giving them a majority vote.
“The meeting of the Cabinet sub-committee and the workers recommended that the top management be
sent on leave and the Board reconstituted,†a communication from Suruma to the trade unions said.
In addition, the cabinet has proposed an independent pensions regulator as part of a general Pension Reform Bill.
“Our target is to have a regulator in place by December 2008. This is an ambitious target but it shows our determination to have an independent regulator as soon as possible,†Suruma’s letter said.
Other recommendations reached during the meeting include a complete overhaul of the social security sector, including the provision of loans to workers, unemployment benefits, medical insurance and lowering the age at which workers can access their savings from 55 to 45.
Lyomoki, however, said the recommendations were still subject to approval by Cabinet, which sits on Wednesday.
In his communication, Suruma stressed that NSSF had produced a remarkable growth in the last four years, with assets rising to over sh1trillion and the interest paid to workers doubling, from 7% to 14%.
He also explained that all board members, including the workers’ representatives, had been dropped and could not be reappointed following recommendations by the Auditor General and the Inspector General of Government (IGG) on the Nsimbe Estates project in 2005.
“When we requested the trade unions and the employers association to send us names of new representatives, they sent the names of the people who had represented them on the previous board,†Suruma wrote. He said he could not have acted contrary to the IGG’s recommendations and called upon the labour unions to submit new nominations.
Suruma further informed the workers’ organisation that besides the probe of the Temangalo land deal by the parliamentary committee, two more investigations into NSSF were being carried out.
“The Auditor General had asked a private accounting firm, KPMG, to carry out a fresh audit of NSSF,†his letter said.
“As already indicated, in July 2008, the Ministry of Finance also asked the Bank of Uganda to carry out a forensic audit of the NSSF and report within three months.â€
Lyomoki, flanked by members of the trade unions Christopher Kahirita, Wilson Owere, Catherine Aneno and Emmanuel Baingana, told the press that the reforms in the social sector should be completed by the end of December.
“Because of all these developments, we agreed that the planned demonstration for workers be suspended. The demonstration was not an end in itself, but a means to an end,†Lyomoki said.
“We have achieved 90% of our demands. The workers are satisfied that the intended purpose for the demonstration has been achieved.â€
THE workers’ leaders yesterday called off a country-wide demonstration against alleged mismanagement of the National Social Security Fund (NSSF), scheduled for this morning, after the Government assured them it would give in to most of their demands.
Workers’ MP Sam Lyomoki announced at a press conference at the Media Centre yesterday that the Government had agreed to send the NSSF top management on leave while investigations into the Temangalo land deal were going on.
A meeting between finance minister Ezra Suruma, Vice-President Gilbert Bukenya and the workers also agreed to increase the number of workers’ representatives on the board to five, giving them a majority vote.
“The meeting of the Cabinet sub-committee and the workers recommended that the top management be
sent on leave and the Board reconstituted,†a communication from Suruma to the trade unions said.
In addition, the cabinet has proposed an independent pensions regulator as part of a general Pension Reform Bill.
“Our target is to have a regulator in place by December 2008. This is an ambitious target but it shows our determination to have an independent regulator as soon as possible,†Suruma’s letter said.
Other recommendations reached during the meeting include a complete overhaul of the social security sector, including the provision of loans to workers, unemployment benefits, medical insurance and lowering the age at which workers can access their savings from 55 to 45.
Lyomoki, however, said the recommendations were still subject to approval by Cabinet, which sits on Wednesday.
In his communication, Suruma stressed that NSSF had produced a remarkable growth in the last four years, with assets rising to over sh1trillion and the interest paid to workers doubling, from 7% to 14%.
He also explained that all board members, including the workers’ representatives, had been dropped and could not be reappointed following recommendations by the Auditor General and the Inspector General of Government (IGG) on the Nsimbe Estates project in 2005.
“When we requested the trade unions and the employers association to send us names of new representatives, they sent the names of the people who had represented them on the previous board,†Suruma wrote. He said he could not have acted contrary to the IGG’s recommendations and called upon the labour unions to submit new nominations.
Suruma further informed the workers’ organisation that besides the probe of the Temangalo land deal by the parliamentary committee, two more investigations into NSSF were being carried out.
“The Auditor General had asked a private accounting firm, KPMG, to carry out a fresh audit of NSSF,†his letter said.
“As already indicated, in July 2008, the Ministry of Finance also asked the Bank of Uganda to carry out a forensic audit of the NSSF and report within three months.â€
Lyomoki, flanked by members of the trade unions Christopher Kahirita, Wilson Owere, Catherine Aneno and Emmanuel Baingana, told the press that the reforms in the social sector should be completed by the end of December.
“Because of all these developments, we agreed that the planned demonstration for workers be suspended. The demonstration was not an end in itself, but a means to an end,†Lyomoki said.
“We have achieved 90% of our demands. The workers are satisfied that the intended purpose for the demonstration has been achieved.â€