NSSF makes sh130b profit
Jul 14, 2008
THE National Social Security Fund (NSSF) posted a 22% growth in net profit last financial year, from sh107b to sh131b, managing director David Jamwa has announced.
By Sylvia Juuko & Alice Kiingi
THE National Social Security Fund (NSSF) posted a 22% growth in net profit last financial year, from sh107b to sh131b, managing director David Jamwa has announced.
The fund’s assets base surged from sh900b to sh1.19 trillion.
NSSF will next week announce the new interest rate it will pay to its members, which currently stands at 7%.
“Our excellent performance in the last financial year gives us room to adjust the interest upwards. For the first time, we are going to pay our members above the average inflation rate, currently close to 9.5%, to create value for real economic terms,†Jamwa said.
Speaking at a press conference at Workers’ House yesterday, he attributed last year’s success to asset reallocation and cost management.
“The growth is attributed to aggressive equities reallocation, trading in shares and re-allocation of investment, from treasury bonds and bills to commercial paper.â€
He said NSSF earned sh51b in capital gains during the financial year 2007/08.
Of this, sh11b was made from investing in the Safaricom IPO, sh18b from Stanbic Bank shares and sh13b from shares in Uganda Clays.
The fund also gained from the appreciation of properties and land it had invested in. In addition, NSSF recovered arrears worth sh32b from a number of defaulting employers.
“Bank of Uganda paid sh15b in arrears and sh1b was paid by the Inspectorate of Government. The recovery has been a result of stepped up efforts and publishing names of defaulting employees to ensure they remit contributions for employees,†Jamwa explained.
He said the fund further collected sh500m in refunds from brokers.
He denied media reports that NSSF had lost millions in under-declared funds. “The reports that NSSF was not interested in refunds are factually wrong. During the reconciliation process, we identified a difference in the number of transactions with brokers and we were immediately refunded,†he said.
NSSF will hold its first annual general meeting in October, which will be attended by worker’s representatives, he announced.
He also announced plans to work with financial institutions to use the portion of balances for NSSF members to pay for mortgages, a move that would improve housing in the country.
He admitted that the fund met huge challenges in the restructuring process, as well as in balancing decisions of members and other stakeholders.
THE National Social Security Fund (NSSF) posted a 22% growth in net profit last financial year, from sh107b to sh131b, managing director David Jamwa has announced.
The fund’s assets base surged from sh900b to sh1.19 trillion.
NSSF will next week announce the new interest rate it will pay to its members, which currently stands at 7%.
“Our excellent performance in the last financial year gives us room to adjust the interest upwards. For the first time, we are going to pay our members above the average inflation rate, currently close to 9.5%, to create value for real economic terms,†Jamwa said.
Speaking at a press conference at Workers’ House yesterday, he attributed last year’s success to asset reallocation and cost management.
“The growth is attributed to aggressive equities reallocation, trading in shares and re-allocation of investment, from treasury bonds and bills to commercial paper.â€
He said NSSF earned sh51b in capital gains during the financial year 2007/08.
Of this, sh11b was made from investing in the Safaricom IPO, sh18b from Stanbic Bank shares and sh13b from shares in Uganda Clays.
The fund also gained from the appreciation of properties and land it had invested in. In addition, NSSF recovered arrears worth sh32b from a number of defaulting employers.
“Bank of Uganda paid sh15b in arrears and sh1b was paid by the Inspectorate of Government. The recovery has been a result of stepped up efforts and publishing names of defaulting employees to ensure they remit contributions for employees,†Jamwa explained.
He said the fund further collected sh500m in refunds from brokers.
He denied media reports that NSSF had lost millions in under-declared funds. “The reports that NSSF was not interested in refunds are factually wrong. During the reconciliation process, we identified a difference in the number of transactions with brokers and we were immediately refunded,†he said.
NSSF will hold its first annual general meeting in October, which will be attended by worker’s representatives, he announced.
He also announced plans to work with financial institutions to use the portion of balances for NSSF members to pay for mortgages, a move that would improve housing in the country.
He admitted that the fund met huge challenges in the restructuring process, as well as in balancing decisions of members and other stakeholders.