NSSF toughens on defaulters

Apr 27, 2008

THE National Social Security Fund (NSSF) has threatened to attach the Uganda National Export Promotion Board’s (UEPB) assets over arrears amounting to over sh630m.

By Mary Karugaba

THE National Social Security Fund (NSSF) has threatened to attach the Uganda National Export Promotion Board’s (UEPB) assets over arrears amounting to over sh630m.

In an April 8 letter to the trade permanent secretary, Florence Kata, the UEPB executive director, said NSSF had already issued her a copy of criminal sermons regarding the arrears.

She explained that the arrears were caused by meager budgetary allocations by the Government.

“This issue has been explained to you various times before. The purpose of this letter is to seek your intervention in the matter to avoid the embarrassing legal action,” Kata wrote.

Dr. Ezra Suruma, the finance minister, presented the letter to the trade and industry committee chairperson Perez Ahabwe.

This was during various meetings with the different committee chairpersons to discuss the 2008/9 financial year budget estimates.

Ahabwe said under-funding UEPB was frustrating President Yoweri Museveni’s efforts to promote exports.

“The budget’s objective is to develop a competitive and export-oriented industrial sector.

“How are we going to do this with such meager budget?” he asked.

Ahabwe said the trade ministry’s budget was cut from sh41.6b last financial year to sh33.6b.

Sam Ssenkungu, the trade acting permanent secretary, explained that the ministry had forwarded the matter to the finance ministry for discussion.

Ssenkungu also disclosed that despite the importance of Jua Kali (Blacksmith), the sector had not been allocated money this financial year.

He said the ministry had invited bids for the construction of the Jua Kali exhibition centres at Makindye and Luzira.

He said the Makindye centred required over sh13b.

However, Suruma told the MPs that the allocations this financial year depended on the resource envelop.

“We can not moan day and night over budget cuts when we cannot create resources.

“I have spent two days being grilled by Cabinet over the same issue. Permanent secretaries know this,” he said.

His permanent secretary, Chris Kassami added that budget ceilings were a function of resources.

“We are used to ministerial cries of ‘we don’t have enough money.’ The money went to sectors of priority. Otherwise, we cannot satisfy all these permanent secretaries,” he said.

According to the estimates, the Government plans to increase the budget from sh3,255b last financial year to sh3,864.2b this year.

Kassami said this year’s budget would focus on enhancing economic growth and generate employment in order to increase incomes of the vast majority of Ugandans.

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