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Consultants want deeper NSSF probe

By Vision Reporter

Added 30th January 2003 03:00 AM

AUDIT consultants, Ernst & Young, have called for a deeper investigative audit of the National Social Security Fund (NSSF) due to financial anomalies there

AUDIT consultants, Ernst & Young, have called for a deeper investigative audit of the National Social Security Fund (NSSF) due to financial anomalies there

AUDIT consultants, Ernst & Young, have called for a deeper investigative audit of the National Social Security Fund (NSSF) due to financial anomalies there, reports Richard Mutumba.

“We believe that an investigative audit need to be performed at the NSSF as information available to us indicates the possibility of financial anomalies,” Ernst & Young said in a forensic audit report released recently.

The report was commissioned by the new NSSF board last year to undertake, among other assignments, an audit of the financial affairs of the fund, its organisational structure, records management, investments, procurement procedures and existing contracts.

The report said staff who did not want to be quoted expressed concern that some transactions by the fund were entered into without following the right procedures.

“Cases were cited where the procurement procedures are not followed, making it difficult to determine whether the NSSF got value for money and whether such expenditure was in the interest of NSSF,” the report said.

The report cited several anomalies in the 13 existing contracts and projects, which include the Crested Towers building project where the auditors found it strange that the borrower, National Housing and Construction Company drafted the loan agreement instead of the lender. The project cost NSSF sh14.4b (US$8m).

The report said the project was to cost US$14m and NSSF was supposed to contribute US$4m (sh7.2b). However, other financiers pulled out of the project and NSSF remained the sole financier.

Consultants want deeper NSSF probe

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