UGANDA GOVT. SHOULD LEAVE NSSF FUNDS TO VIABLE INVESTMENTS, NOT CONSUMPTION

Uganda Government must be very careful in being tempted to touch NSSF funds and put it into what is not directly creating value. Workers are sacrificing a lot to see the savings made and the monies should only be put into investments that are viable, and not otherwise. The Government of Uganda is to blame for creating the environment that is instead inducing poverty for the people. It is unfortunate that for over 26 years, the Uganda Government has not learnt from past mistakes, instead it is making mistakes that would not be expected given the time spent in office. William Kituuka Kiwanuka --------------------------------------------------------------------------------- GOVT. FREE TO USE NSSF MONEY, SAYS BITATULE! By Ismail Musa Ladu Posted Wednesday, June 20 2012 at 00:00 Should workers who save with the National Social Security Fund be consulted before their money is lent to the government? Yes, say MPs representing workers. No, says businessman Patrick Bitature who also chairs the board of the Uganda Investment Authority and sits on the Presidential Investors Roundtable. Speaking at a post-Budget dialogue in Kampala yesterday, Mr Bitature said the money held by NSSF should be invested in government infrastructure programmes and that the process should not be politicised. “Democratic debates have not only derailed this country’s development, but killed it,” Mr Bitature said yesterday. “It is the State that compelled you to save that money. And it has the right to invest it in infrastructure rather than leave it to lie idle.” His comments come a fortnight after President Museveni revealed plans to borrow almost a trillion shillings from the NSSF to invest in building roads and power dams and help kick-start slowing economic growth. Mr Bitature, who has business interests in telecoms, energy, hotels and retail, said he is a “big contributor” to NSSF and sees no problem surrendering his right to influence the affairs of the Fund to the State to make the correct investment decisions. He said it would be wrong for the government to discuss with workers and NSSF management if that could lead to a delay or derailment of the plans. Share This Story Share “Government investment decisions should not be contested but implemented,” Mr Bitature said, pointing to delays in building the dam at Bujagali as one project whose time lines were affected by debate. “If people are not happy they can vote them out at in the next election.” ‘‘Use the funds’’ Speaking in agreement, Assoc. Professor Samuel Sejjaaka of Makerere Business School said NSSF’s investment in treasury bills and bonds was “socially and functionally” useless. The Associate professor said the Shs2.5 trillion currently being managed by the fund should be used in building roads and railways instead. Worker’s MP Sam Lyomoki, however, told Daily Monitor yesterday that the views giving the government free rein to invest NSSF money was out of touch with reality. “This is workers money they are talking about,” he said. “The fact that the government is keeping it does not mean that it owns it.” Mr Lyomoki said while workers are not opposed to lending money to the government, they must be consulted. “We have our member in the NSSF board and they must be party to the entire process as we keep an eye on the side lines,” he said. iladu@ug.nationmedia.com