NOTU Calls for Re-evaluation of NSSF Real Estate Investments
The National Organization of Trade Unions (NOTU) has demanded that the National Social Security Fund's (NSSF) real estate investments be reevaluated to better meet the interests of the donors.
NOTU Calls for Re-evaluation of NSSF Real Estate Investments
The National Organization of Trade Unions (NOTU) has demanded that the National Social Security Fund’s (NSSF) real estate investments be reevaluated to better meet the interests of the donors.
On Tuesday, January 31, 2023, Musa Okello, the Acting Chairman General NOTU, made the statement while testifying before the Select Committee looking into the alleged mismanagement of the NSSF.
The union claims that the Sh1.1 trillion real estate investment for the year ended in 2021 is in jeopardy and that workers cannot afford to buy homes.
According to Okello, the fund built homes for about Shs3 billion apiece at Lubowa on the Entebbe Road.
Who are these homes being constructed for? These are meant to be investments for donors who, when it comes time to access their funds, can’t even save Sh100 million. The level of insensitivity to the demands of the employees is really high, according to Okello.
He pushed the committee to support the recommendation that affordable housing be built, claiming that this was the only surefire way to generate profits on investments while also helping fund contributors.
Okello also requested that the committee look into the allegations of self-nomination made against the NSSF Board representatives by the Central Organization of Free Trade Unions (COFTU).
“Illegal representation on the board is real because COFTU members nominate themselves,” A violation exists and needs to be fixed, he said.
Hon. Fortunate Nantongo (DP, Kyotera District Woman MP) questioned how investments are made while NOTU is represented on the board in response to the need to reevaluate the NSSF investment plan.
Who is in charge of these investments and how are they started? The NOTU is a member of the board, thus in my opinion, the union is consulted, Nantongo stated.
The NOTU Board delegates were urged by Hon. Karim Masaba (Indep., Industrial Division, Mbale City) to constantly pay close attention to the NSSF investment audited statements.
He questioned, “Do you see the NSSF audited accounting since you think Shs1 trillion is at risk.”
The committee’s chair, Hon. Mwine Mpaka, questioned NOTU’s involvement in NSSF governance, claiming the board is responsible for such choices.
Richard Bigirwa, the secretary general of the NOTU, wants the NSSF to increase compliance instead, claiming that the fund hasn’t done enough to guarantee that companies are paying workers’ contributions.
“Employers who take money from employees but fail to pay it to NSSF have come to us with complaints. We also have data that demonstrates that some organizations have over 500 employees on file but contribute less than 100 to NSSF because the vast majority are classified as casual workers, the official said.
According to Bigirwa, the NSSF also needs to address the problem of suspense accounts, in which employees aren’t listed as donors but nonetheless have accounts opened in their names and funds sent to them.
However, Hon. Amos Kankunda (NRM, Rwampara County) urged NOTU to be informed about the number of employees who make NSSF contributions and the state of their funds.
“Do you receive monthly information on the status of the savings and is the union aware of the number of savers? You must obtain these specifics from employers, he advised.
Following allegations of corruption and poor management of the Sh17.9 trillion fund, the House decided on January 19, 2023, to establish a committee to look into the workings of the NSSF.
