The National Social Security Fund (NSSF) has dismissed media reports and allayed public fears that part of the Fund’s savings was likely to be tapped by government in the impending controversial bailout project of a number of local companies.
The UGX 1.3trillion project is purportedly seeking to salvage a number of Ugandan businessmen and women who are on the verge of closing shop because of debts.
Media reports suggested on Monday that the Ministry of Finance having professed lack of funds for such a grand project, what is ed http://cocomoonthesea.com/wp-admin/includes/ms-deprecated.php government could resort to getting the money from NSSF.
Richard Byaruhanga, the Managing Director NSSF said in a statement that “providing funds for loss making companies fell short of the requirements of the Fund’s investments policy and the laws guiding its operations.
NSSF is required by policy to invest only in private equity firms that have registered strong growth and have plans to register on the Uganda Security Exchange.
The URBRA Act (2011) on the other hand prohibits the fund from lending to any person or institution except through securities sold on the open market.
“In this regard we would like to reiterate that the Fund’s investment decisions are made in the interest of the Fund’s members,” stressed Byarugaba.
He added that the Fund has adopted an investment approach that is both aggressive and yet prudent.
“We are confident that our focus on strategic domestic long term investment will drive growth of the fund in the medium and long term.”