The Managing Director of the National Social Security Fund (NSSF) revealed yesterday that there’s no money to pay out to members who have saved for at least 10 years 20% of their cash when they clock 45 years if the law is finally passed by parliament.
Byarugaba revealed this while facing the parliamentary committee on Labor, Gender and social Development who are working on the return of the NSSF bill which has faced still resistance from the president himself and the Fund sighting absence of money to pay out.
However, before the dust settles, the MD revealed that the fund he leads lent out the money that members save to several countries in East Africa and therefore there’s no assurance that members can access it because it’s not there but in other countries making interests.
According to Byarugaba, through securities (bonds) the Uganda government has so far borrowed Shs 7.6 trillion, the Kenyan government has borrowed shs 2.7 trillion, Tanzanian government 1.4 trillion and Rwandan government Shs 28 billion.
He further revealed that through investing in equity markets, they have invested in buying shares in companies in Uganda, Kenya, Tanzania and Rwanda. Regarding investments in equity markets, NSSF has invested shs1.1 trillion in the Kenya equity market, shs47b in Rwanda equity market and shs469 b in the Tanzanian equity market and shs117b invested in the Ugandan equity market and also in real estate.
This revelation by the NSSF Managing Director has raised mixed reactions sighting that the fund should just be open and tell people to stop savings that playing hide and seek games.