By PSCU
Worth Noting:
- In his response, the Acting Managing Trustee expressed difficulties in tracing some of the clients and even went ahead to suggest writing off some of the debts they have been unable to collect. He told the Committee that the Fund has introduced new ways of payment where funds from their assets are now remitted directly to the bank accounts to avoid traceability challenges.
- During the sitting, the legislators noted from the auditor’s report that the Fund had lost Kshs. 229 Million being money deposited by the Fund in two banks -Chase Bank and Imperial Bank – who have since closed shop.
The National Assembly’s Public Investments Committee on Social Services, Administration and Agriculture yesterday played host to the management of The National Social Security Fund (NSSF) who appeared to respond to Audit queries raised in the Auditor General’s report for the financial year that ended in June 2020.
The Emanuel Wangwe led Committee kicked off the session by asking the Acting Managing Trustee of NSSF, David Mwangangi, the Acting Finance Manager, Ms. Merita Mutinda and the Acting General Manager incharge of properties Moses Cheseto to explain why the fund had unreconciled transactions. The auditor had raised the issue of possession of receipts in bank statements but which are not supported in the cash book and about receipts in cash books but which are not reflected in bank statements. The Members further sought to know why there are payments in bank statements which are reflected not in the cash books and whose amounts could not be confirmed at the time of audit since management did not give explanations.
The Committee went ahead to question the monies collected from debtors on the funds properties. The report of the Auditor General had pointed out that the amounts collected from debtors could not be confirmed.
Committee Member Geoffrey Wandeto (Tetu) at this point wondered whether Kenyans should continue trusting the fund with the bigger resources the are collecting today following the increment in contrubutions.
“At this time and age, we should not be talking of bank reconciliations, especially for organisations of such a magnitude. Do you have a proper ERP serving the process now that the government has entrusted you with more resources; almost 5 times what Kenyans have been contributing? How do we trust you if you can’t reconcile the little you are collecting?”, He posed.
The unreconciled accounts date back to 2014 a situation that has denied many contributors access to their funds.
In his response, the Acting Managing Trustee expressed difficulties in tracing some of the clients and even went ahead to suggest writing off some of the debts they have been unable to collect. He told the Committee that the Fund has introduced new ways of payment where funds from their assets are now remitted directly to the bank accounts to avoid traceability challenges.
During the sitting, the legislators noted from the auditor’s report that the Fund had lost Kshs. 229 Million being money deposited by the Fund in two banks -Chase Bank and Imperial Bank – who have since closed shop.
Members of the Committee questioned whether due diligence had been done before investing with the banks that have now gone under.
“Do you have an investment policy and banking policy where all parametres including safety of the monies you receive are considered?”, asked Martin Otieno (Ndiwa).
In his response, Mr. Moses Cheseto, Acting General Manager Propertie, undertook to furnish the Committee with their investment policy and documents proving their mandate on deliverables.
“The NSSF of yester years is not the NSSFof today. We have enhanced governance. Today we have a regulator who is the Retirement Benefits Authority (RBA) to keep us in check. We can thus assure Kenyans that their money is safe”, added Acting Managing Trustee, Mr. Mwangangi.
Other banks the Fund is using to secure their monies are Absa, Cooperative Bank, Equity, I&M, National Bank, SBM, KCB, NCBA and Stanbink.
NSSF collects 14 Billion annually with 35% going to expenditures.
Other members present were Peter Masara (Suna West), Joshua Kimilu (Kaiti), Bishop Jackson Kosgey (Nominated), Caleb Amisi (Saboti), Wambugu Wainaina (Othaya), Fatuma Jeho (Wajir) and Banard Kitur (Nandi Hills).