The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | JULIUS BUSINGE | Patrick Byabakama Kaberenge, a seasoned banker and retired auditor has been re-appointed as the 11th Chairman Board of Directors for the National Social Security Fund. His new contract, alongside other nine members runs for the next three years. The Independent’s Julius Businge spoke to him upon getting a new term in Kampala on Dec.04.
What do you make of this new development?
It is gratifying to see that six out of the nine directors from the 10th Board have been reappointed to serve on the 11–Board. To me this is a confidence vote and indeed a testimony that the minister found our performance satisfactory.
What is your general assessment of the three years that you have served as BOD chair for the slightly over Shs10trillion Fund?
We delivered on most of our promises.The Fund grew by 79% from Shs5.5trillion in the financial year 2014/15 to Shs9.98trillion in the financial year 2017/18.In terms of staff recruitment and retention, the Fund witnessed stability under our tenure. We recruited competent and experienced top management who have delivered impressive results over the years. Our emphasis on merit-based recruitment has permeated the Fund, as evidenced by consistently good performance throughout the Fund. As a Board, we have supported and rewarded good performance and promoted harmony at all levels in the Fund. Staff satisfaction index has also improved from 84.3% in FY2015/16 to 90% in the FY2017/18. On real estate development, a number of stalled real estate projects were unlocked. The Fund recovered 440 acres of Nsimbe land, completed the construction of an Ultra Office Complex in Jinja, commenced development of Lubowa project and Pension Towers, and is on course to complete another office complex in Mbarara and 40 apartments in Mbuya.We have also consistently paid a good return on member’s savings during our three-year tenure. This has been consistently above two percentage points above the 10-year average rate of inflation. I am happy to note that the highest interest rate of 15% declared for the last financial year was paid to members during the stewardship of the 10th Board. It is therefore no surprise that customer satisfaction ratings currently stand at 85%.
What is your urgent next move?
We are going to do more outreach; getting closer to the members and be in position to respond faster to the member’s needs. We are going to finish these stalled projects especially the houses.
How far are the plans that you had regarding converting debt to equity in the case of Uganda Clays?
So far, nothing has changed. Uganda Clays was running badly in the past but it has recorded improvement. If they can pay us back without changing our debt into equity that will be better. However, if they find difficulty to pay us back, then, we will see what follows. We don’t want them pressured and getting them liquidated. Actually, it is Uganda Clays that is going to benefit from our stalled projects because they are the ones going to supply us with some of the raw materials.
Would you say the image of the Fund as improved and it is time to forget the past?
The image is much better. Everybody wants to deal with NSSF at the moment. The Board is collaborating well with the management and the Ministry of Finance is doing a fantastic job as a top supervisor. We also have good political support. We have invested Shs7trillion in government paper and most of it is being used to do development projects which are critical in growing the economy. We are part of the private sector and believe we are doing a very good job.
Now that the liberalisation bill was withdrawn from Parliament and there are plans to amend the NSSF Act to incorporate the earlier proposed sector reforms…what does this mean to you?
True the bill was withdrawn because we argued to government that NSSF was doing a good job and it is a national institution. When we get profits and surplus it is distributed internally. If you bring the ‘guys’ from out they will get the money here and take it out. At cabinet level government decided that NSSF stays. I think they are making a separate law to ensure there is a special and similar arrangement to the one of NSSF regarding the about half a million public sector employees. According to URBRA and the laws we are operating under, we can only invest in the East African region and our wish is to allow us invest further like in South Africa, America and UK. However, the government’s idea is keep the money near because we are short of capital.
What are the projections for the next three years?
We will continue to focus on growing our balance sheet size to Shs15trillion. This projected growth requires that the mandatory cap is extended from the current threshold of five employees to one employee, so that even self-employed people are required to remit social security contributions. We will go for the right technology for pension administration, unlocking the value of real estate projects of Pension Towers, completion of the first phase of Lubowa, Nsimbe and Temangalo developments. We will continuously improve staff capabilities, remuneration and reward schemes.
