Lobby takes on NSSF over loss of pension cash
Business
By
Nicholas Waitathu
| Jun 06, 2013
By Nicholas Waitathu
Nairobi, Kenya: Accountants want employees to stop making contributions to the National Social Security Fund (NSSF) until the financial mess at the pension fund is addressed.
A report by the Auditor-General tabled in Parliament last week, indicated savers could have lost billions of shillings in dubious transactions and shady land deals.
Responding to the findings yesterday, the Institute of Certified Public Accountants of Kenya (ICPAK) also wants the board held responsible for the financial impropriety.
Addressing the 35th Annual General Meeting at CPA Centre in Nairobi yesterday, ICPAK Chairman Benson Okundi said the board and management should not be allowed to receive further payments from contributors until the fund cleans its books.
READ MORE
Expert: The shilling has regained value, but don't expect it to last
Unearthing the artifacts of WWII: A journey through Matuu and beyond
Roam, County Bus Service partner to deploy 200 electric buses
Budget cuts loom for Parliament thanks to Sh9.6b Bunge Towers
Private sector partnerships important to catalysing sports
Tax stand-off as boda boda riders defy county call to pay
Islamic banking gets traction in Africa as Salaam Bank feted
Data privacy major challenge for Kenya's digital space, report
Angola ICT Minister: Invest in space industry to ensure a connected, peaceful Africa
“We propose that those at the minimum wage level should not be asked to contribute to the scheme until such a time that the NSSF board can assure us of the safety of our contributions,” Okundi said.
He added: “It is unfortunate this massive waste of public resources is taking place at a time when the country is saddled with huge debts and Government is forced to borrow heavily to finance its Budget.”
Based on the findings, he said, the NSSF board lacked the moral authority to ask for more money if what they have received so far cannot be sufficiently accounted for.
Okundi also accused the fund managers of dragging their feet in implementing past recommendations of the Auditor-General, exposing savers’ money to possible loss.
However, NSSF Managing Trustee Tom Odongo had earlier discounted the claims of impropriety as inaccurate and lacking current facts.
He added that the Fund had instituted measures to recover all monies advanced to legal entities.
“Any entity which has to date failed to deliver on its part of the bargain as per binding contractual terms with NSSF will be held liable,” he said.
“We have instituted recovery measures at various levels and have even invoked the principle of personal liability for malfeasance against directors of limited companies deemed to have short-changed the fund,” he added.
- How General's departure hampers Ruto bid to win over hearts in lake region
- Expert: The shilling has regained value, but don't expect it to last
- Budget cuts loom for Parliament thanks to Sh9.6b Bunge Towers