Last week, the Minister of
Finance reappointed Mr. Godfrey Byarugaba for another term as Managing Director
of NSSF, Geraldine Ssali as Deputy MD and a new Corporation Secretary was also appointed. For some
of us who are constantly incensed with the political machinations in big
government agencies, it was a relief to see a substantive appointment in almost
a year.
NSSF has an immense potential to
turn around the lives of ordinary Ugandans, but just like any ambitious project
government attempts to undertake, the ghosts are quick to maul it down and
frustrate it. MPs usually call for endless inquisitions and projects end up
stalling or dying literally. Of course we need checks and balances in all systems
because Uganda is not a country of angels. In fact our government seems to be
infested with some people from hell who seem to have been taught corruption
from the time they started school. But having investigated, inquired, probed
and proved that there was no reasonable cause not to reappoint a man that has overseen
the tremendous growth of NSSF into its multi trillion shillings portfolio, made
a sound and profit making investment in UMEME shares and the first MD to have
finished his term without going to jail, the Minister made the right choice in
Byarugaba.
However, the great potential at
NSSF still stands underutilized and disappointing for a fund that pulls in over
Shs 400bn annually. The continuous Inquisitions and investigations into the fund’s
dealings almost every year seem to have created a sense of fear for making big
investment deals and need to come to an end. Unsubstantiated allegations need
to stop as well. Now, more than ever, we need to see NSSF taking Investment and
valuable Corporate Social Responsibility seriously. The fund needs to play a
leading role in Infrastructure development and value addition. Ugandans are not
satisfied with a fund they get to hear about during commissions of Inquiry
because having trillions of cash lying idle somewhere is too much a temptation
for even the best human species, which partly explains the jail sentences
dished out to former MDs. I believe Ugandans would instead prefer to interact
regularly with what the fund is using their money for and to enjoy the benefits
of their savings outside the increasing interest rates that they can only
access after so many years, and for some, never at all.
Buying shares in other commercial
entities and investing in real estate is a step in the right direction. But
NSSF should do more. The money being borrowed by government to fund some of
these infrastructure projects should be sourced from NSSF after a thorough
assessment of economic viability, return on Investment and such other
calculations. The fund should be championing safe water supply to the Karamoja
region for example, as part of its Corporate Social Responsibility.
Of course CSR alone doesn’t
sustain the growth of any organisation; which is why the fund should also seek
lawful, profitable and responsible investments such as leading the cause for
low cost housing projects in the greater Kampala region. Such investment decisions
must be made purely on business sense. The fund has the potential to stimulate
high economic growth through investment in national priorities, basically
infrastructure. It should be partnering with Kampala Capital City Authority
through debt instruments such as municipal bonds, to provide cash for opening
up and reconstructing the blocked drainage system in the city and fixing roads.
NSSF has the cash to fund a state
of the art hospital facility in the country based on sound investment terms, in
partnership with private players. This culture of Ugandans seeking medical care
abroad and some being unfortunate to die there is ridiculous in this day and
age. Not when we have trillions stashed away gathering dust in the fund’s
accounts. The fund should be exploring and piloting a medical insurance scheme
for its subscribers in partnership with the available service providers. This
is the kind of day to day interaction with people’s savings that I’m talking
about. The kind of value addition into people’s lives that the fund needs to
explore besides just paying interest.
If the fund has the cash to
finance major infrastructure such as power dams, bridges and roads, why are we
borrowing money we don’t need to pay for things we can pay for ourselves?
Our parliament needs to explore
the legalities involved and streamline the laws already in place to provide for
this cause and put an end to this runaway borrowing that further delays our
economic growth. Over to you Madame Speaker and MD Byarugaba.
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