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NSSF not giving workers’ money to bail out indebted ‘tycoons’ – Byarugaba

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Workers’ body, National Social Security Fund (NSSF) Managing Director Richard Byarugaba has joined Finance Minister Matia Kasaija in denying President yoweri Museveni’s proposed bail out of heavily-indebted city tycoons with Shs1.3 Trillion, saying the fund doesn’t lend money to companies.

The 66 companies and individuals listed borrowed money from commercial banks and have fallen back on debt obligations. Experts say ownership and influence on the economy of companies on the list is questionable.

Mr Byarugaba in an interview with NBS TV on Monday said the laws of Uganda don’t allow NSSF to lend money to companies.

“It is very clear in the constitution and the laws that we follow doesn’t allow NSSF to lend money to companies,” Byarugaba told NBS’ Solomon Sserwanja.

“We (NSSF) can only deal with companies quoted on stock exchange and as far as we are concerned, the companies listed for bail out are not quoted on stock exchange,” he continued.

The Ministry of Finance has made it clear it is not ready to dish out Shs1.3 trillion. NSSF has more than Shs6.5trillion in assets and money, most of which is held in fixed accounts in banks.

The fund also collects at least Shs60billion every month. So, government could turn to this to extend a helping hand.

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