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Social security organs’ changes mostly welcome

Social security organs’ changes mostly welcome

After serving the country for many years, pensioners have been turned into destitutes. Many have been reduced into beggars and spend a lot of time walking in search of their payments and some die before they are paid anything. It is hoped that the changes will be implemented as soon as possible to ensure the burden is eased.

According to the Minister for Labour and Employment, Mrs Gaudensia Kabaka, social security funds will be paying two per cent penalty for failure to pay in time. The penalty should have been higher at least up to 20 per cent and serve as deterrent for such a malpractice. The changes on the law also discourage misuse of members’ funds.

There is trend where the funds are pumping a lot of money in many projects. There were complaints in the National Assembly recently that the government owes social security funds more than a whooping 400bn/- that was spent on construction of the University of Dodoma (UDOM).

There is no doubt that the country needs huge projects like UDOM, which upon its completion would accommodate over 60,000 students. However, the funds should be used prudently to ensure they continue to grow more stronger and meet their obligations.

Those borrowing fron institutions like National Social Security Fund, Parastatal Pension Fund, Government Employees Provident Fund and Local Authorities Provident Fund should ensure they pay back. There are fears that the schemes may soon or later run bankrupt. It is understood that there are many projects that the National Social Security Fund (NSSF) plans to invest in, including the Kigamboni Bridge and several housing schemes.

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Author: EDITOR

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