NSSF Faulted for Failure to Address Recurrent Querry on Suspense Accounts
The select committee looking into claims of mismanagement at the National Social Security Fund was informed by Joseph Kirya, Director of Audit in the Auditor General's Office, that the fund's administration had neglected to address the reoccurring issue with suspense accounts.
NSSF Faulted for Failure to Address Recurrent Querry on Suspense Accounts
The select committee looking into claims of mismanagement at the National Social Security Fund was informed by Joseph Kirya, Director of Audit in the Auditor General’s Office, that the fund’s administration had neglected to address the reoccurring issue with suspense accounts.
On Friday, February 3, 2023, Kirya, John Muwanga, the Auditor General, and other officers came before the committee.
NSSF reported unallocated member contributions of Sh38.2 billion in 2020, Sh45 billion in 2021, and Sh57 billion in 2022, according to the Auditor General’s report.
Kirya attributed this to the NSSF’s failure to contact employers who send payments without a list of employees.
“Employers are required to furnish a list of beneficiaries when they pay employees. However, what we have noticed over the years is that businesses would make payments without accompanying lists, making it impossible to assign the money and forcing it into suspense accounts, said Kirya.
He claimed that numbers on unallocated monies continue to rise despite repeated requests to NSSF to address the issue.
The Committee Chair, Hon. Mwine Mpaka, questioned him on the actions the Auditor General has taken to resolve the complaints regarding suspense accounts, which served as the impetus for his response.
Savings account holders have complained to us on numerous occasions, and the Auditor General doesn’t appear to be aware of the problem, according to Mwine Mpaka.
The Auditor General was tasked by Hon. Amos Kankunda (NRM Rwampara County) to look into the matter and determine whether NSSF had a system in place to protect the money in the suspense accounts.
In the meantime, Edward Akol, the Assistant Auditor General in charge of audit services, disclosed that a review of the fund’s investment income discovered unnecessary spending totaling Sh300 million and US$293,000.
He claimed that although Sh323 million was spent on the Lubowa real estate venture to hire contractors, the fund still maintains a fully functional procurement and disposal section.
In response to the delayed delivery of orders for project beginning, he continued, US$ 173,000 and US$ 120,000 were paid to contractors as compensation claims due to the renewal of performance and advance guarantees.
“I believe that better planning may have prevented this from being squandered by the fund. I suggested to management that they recover these funds and do additional audits of the previously paid things,” he continued.
Hon. Charles Bakkabulindi (NRM, Workers Representative) expressed concern about unnecessary expenses, claiming that they harm savers’ interests.
“We have been hearing from the media and the fund’s management that workers’ money is safe and yet you are talking about over payments and avoidable payments; should we still trust that the money is safe?” Bakkabulindi asked.
On 19 January 2023, the House resolved to institute a committee to inquire into the operations of NSSF following reports of corruption and mismanagement of the Shs17.9 trillion fund
