By Our Reporters.
Members of Parliament representing workers and trade union leaders last month put up a spirited “fight” to push for the transfer of the National Social Security Fund (NSSF) from the Finance and Economic Planning Ministry to Gender, Labour and Social Development Ministry.
The Workers MPs struggled in the House and even transferred their fight and lobby to the Gender, Labour and Social Development Parliamentary Committee retreat that was scrutinizing the final NSSF Amendment Bill 2021.
According to sources within the committee, there was almost complete common ground in unison for the legislators to make final recommendation that the NSSF should be transferred to GLSD Ministry. However as discussions were going on it emerged that external forces operating under an “invisible hand” were also all out to influence the discussions in the House on NSSF remaining in Finance Ministry.
The Workers Eye has established that as the five legislators representing Workers were lobbying colleagues some National Resistance Movement (NRM) Parliamentary caucus members were pushing for NSSF to remain in Finance Ministry.
It is inconceivable whether proponents of the NSSF bill will succeed in transfering the fund to GLSD Ministry. Legislators in government and opposition plus independents support NSSF midterm access.
This followed contradictory remarks after NSSF Managing Director Mr Richard Byarugaba said they were ready to pay savers if the NSSF Amendment Bill 2021 is enacted into law but later said they lacked enough money to pay out. The development was criticized by mainly trade union leaders and the workers in the country.
But in bid to dispel uncertainty Mr Byarugaba refuted claims that they are against paying out midterm access to the savers and assured workers that NSSF has money to effect payments. Trade union leaders have assured workers in the country to remain optimistic that the NSSF Amendment Bill 2021 will be enacted this year to effect payment under midterm access.
Workers MPs and trade union leaders in National Organisation of Trade Unions (NOTU) and Central Organisation of Free Trade Unions (COFTU) have worked tirelessly and lobbied legislators to support the bill .
Parliament has also been asked to expeditiously pass the bill that aims at allowing members who have saved with NSSF for at least 10 years and or have attained 45 years, to access their money.
National Organisation of Trade Unions (NOTU) Secretary General and MP Bubuulo West Hon. Peter Werikhe Christopher told the Gender , Labour and Social Development Committee October 18, 2021 that there should be no fears on NSSF’s ability to pay.
He said he has been serving on the NSSF board, adding that he knows the money for paying midterm access is available contrary to reports that the fund lacks money.
“ It was a big mistake for Mr Byarugaba to say Ushs 1.8 trillion is the money required to pay out midterm access because that includes the money for those who will have reached retirement and whose money is always budgeted ,” he said.
Earlier Mr Byarugaba while appearing before the Gender and Labour Committee on October 14 said NSSF did not have enough money about Ushs 902b required to pay out midterm access for eligible savers because money was invested in bond and real estate.
But State Minister for Finance in charge of General Duties Hon Henry Musasizi later told the Gender and Labour Committee that all eligible savers would receive their money once the bill was enacted into law.
He said that even after mid–term access cash is granted, the Finance Minister would have the discretion to determine access conditions, including setting up the percentage in the statutory instrument which would not guarantee that all savers would receive the 20 per cent.
During the same meeting National Union of Disabled Persons in Uganda (NUDIPU) Board Chairperson Mr Bumali Mpindi asked the committee to consider their proposal to allow them have mid-term access at 40 years, which MPs did not object.
Hon Musasizi defended the government’s position to transfer management of NSSF to the Ministry of Finance which he said has enough manpower and expertise in controlling and managing finances.
In a related development Hon Peter Werikhe Christopher has asked Parliament to scrap the Uganda Retirement Benefits Regulatory Authority (URBRA) levy of 0.25% on the savings of NSSF.
“ URBRA levy 0.25% on the savings of NSSF is mere fleecing members’ hard earned savings.” he said.
Workers were irked by the fact that URBRA takes away Ushs 6b annually from NSSF through the 0.25% levy which has been paid out for the last 10 years.
Kabweri County Member of Parliament, who is also NOTU Deputy Chairman General Hon Stephen Mugole said he was on NSSF Board Finance Committee and they planned how to pay midterm access once the bill was passed.
He said:” It is wrong to assume that all NSSF constributors who are eligible for the mid-term access pay out would all apply and at the same time.”
Workers MP Hon Dr. Abdulhu Byakatonda told the Workers Eye that it is unfortunate that while they are striving to ensure workers get a Covid-19 receovery life-line, URBRA continues to extort money from NSSF workers’ savings.
He said there is need to safeguard workers’ savings and ensure money is invested in realistic ventures that benefit the members,” he said.
He said:” It is totally unacceptable for URBRA to continue levying such colossal sums of money on NSSF savings.”
Workers MP Hon. Margaret Rwabushaija Namubiru said if the Finance Ministry has the mandate of supervising NSSF would there still be need for URBRA to also supervise the same NSSF?.
She said: ” The Ushs 6b URBRA takes from NSSF is money taken away from members savings.”
National Organisation of Trade Unions (NOTU) Chairman General Mr Usher Wilson Owere told the Gender Committee to ensure no proposal is made in the bill to tax the members’ savings.
He castigated URBRA for extorting money from NSSF adding that they are “organised criminals ” in the Finance Ministry who are robbing workers’ savings in NSSF.
“Its unfortunate that this year alone URBRA is supposed to fleece away workers’ savings to the tune of Ushs 7b from NSSF,” he said.
Central Organisation of Free Trade Unions (COFTU) Chairman General Mr John Oketcho said they are dissappointed by reports that there is no money to pay workers under mid-term access. ” Workers have suffered alot from Covid-19 and should not borrow from banks when their NSSF savings are idle,” he said.
Workers MP Hon. Charles Bakkabulindi said they want NSSF management to be placed under the Ministry of Gender, Labour and Social Development where it rightly belongs for better safeguards against any financial threats.
He said:” It just does not make sense that all matters pertaining to workers and labour generally are placed under GLSD Ministry but when it comes to NSSF money, its taken to Finance Ministry”.
Workers MP and former Parliament Commussioner Hon. Arinaitwe Rwakajara said unless if someone has a hidden agenda on worker’s savings there is no justifiable reason for placing NSSF under Finance Ministry.
“Unless if someone has a hidden agenda on worker’s savings there is no justifiable reason for placing NSSF under Finance Ministry”, he said.
Female Workers MP Hon. Agnes Kunihira said payout of NSSF mid-term access will help workers who have suffered adverse effects of Covid-19 pandemic.
She said:” NSSF money will also help workers put up small investments than borrowing from banks under unfavorable interest rates.”
Hon Kunihira said workers need to access their savings when they are still strong and invest in realistic long term projects that serve them at old age than die as destitute ■
