Pension fund suffers 6.5tri/- loss

Mr Ludovick Utouh
Mr Utouh
The Contoller and Auditor General (CAG) has raised a red flag over the performance of the Public Service Pension Fund (PSPF), revealing that it suffered a loss of 6.5trl/-.

"The fund is on the brink of failing to sustain itself if the government does not intervene," the CAG, Mr Ludovick Utouh, said here. 

Mr Utouh issued the warning while briefing journalists on various audit reports he had earlier presented before the National Assembly as required by the constitution.

According to the CAG, an actuarial evaluation conducted by Genesis Actuarial Solution Limited, which presented its report on June 30, 2010, showed that the fund was performing poorly.

"In addition to poor financial performance, I also realized that the pension fund had issued loans to public and private institutions under the guarantee of the government to the tune of 67.2bn/- without interests," he explained.

The institutions which owe the pension fund include the Higher Education Students Loan Board (HELSB) with a loan of 54.6bn/- and Prevention and Combating of Corruption Bureau (PCCB) -- 6.6bn/-. 

Others are Tanpower Resources, a company linked to former President Benjamin Mkapa and former Energy Minister Daniel Yona which owe PSPF a loan of 5.42bn/- as well as Tanzania Pharmaceutical Industry (TPI) -- 435.057m/-.

Directors of TPI include Regional CCM Chairman of Dar es Salaam Mr Ramadhani Madabida and his wife who is also Special Seats MP, Ms Zarina Madabida. 

Meanwhile, the CAG has described as 'unfortunate' the decision by the Speaker of the National Assembly to disband the Parliamentary Parastatal Organizations' Accounts Committee (POAC) and merged it with the Public Accounts Committee (PAC).

"The reasons for establishing POAC are more valid today than it was then, it would be a miracle for PAC to accomplish just a half of its responsibilities," the CAG warned. He stressed that there is a still a need for a parliamentary oversight committee to supervise public organisations which are increasing each year.

As of February 28, 2013, the CAG conducted audits on 126 public institutions for the financial year 2011/2012 out of 176 institutions that his office is required to audit.
Source: The Daily News, www.dailynews.co.tz, reported by Alvar Mwakyusa in Dodoma
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