COVID-19: NSSF declines to make partial payments to members
Kampala, Uganda | THE INDEPENDENT | The National Social Security Fund [NSSF] has said, it has no legal mandate to make partial payments to its members who are currently struggling with the effects of coronavirus. Since last week when the president ordered for a partial lock down of the country, prices of essential commodities have been on the upward spiral as people make panic shopping in anticipation of a full lock down prompting some to suggest NSSF should consider bailing out members.
In a statement, Richard Byarugaba, NSSF’s managing director says while they empathize with Fund members in the face of the uncertainties resulting from the pandemic, the Fund has no basis upon which to make ad hoc payments as being suggested.
“NSSF is a social security scheme created to provide a safety net for members in case of old age, permanent incapacitation or dependents in the event of the death of a member. The current pandemic does not meet any of the above criteria,” the statement says.
It adds that even if they were provided for under the law, at this stage, they would be discriminatory.
“The Fund has about 1.5 million members, if these were given relief from the Fund the vast majority of the 19 million working population would be left out,” Byarugaba’s statement says.
It goes on to say that about 80 % of the Fund’s assets are invested in government Treasury Bonds, that if they were to pay all its members a portion of their savings, it would amount to government buying back bonds from them to raise liquidity.
“This would leave government short of locally mobilized funds for its social and economic interventions which would have a more devastating effect on the economy in the long term. We are confident that the government is putting in place measures to lessen the economic impact caused by the COVID-19 pandemic.” On Monday, the country recorded more cases of COVID-19 from Ugandans who had recently traveled from Dubai in the United Arab Emirates.
This brings to 9 confirmed cases in the country. 395,579 people have contracted the disease while 17,234 have so far succumbed to it worldwide.
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