The Institute of Certified Public Accountants of Uganda (ICPAU), the umbrella organization that brings together professional accountants in Uganda has warned against opening up the pension industry.
Speaking at their 25th anniversary, ICPAU President, Protais Begumisa warned that allowing more players into the pension industry might not be beneficial to the country.
“We don’t entirely support those who think that bringing many more players is going to be beneficial to us. For example, the way it’s stated; if a player comes and doesn’t do well, who suffers; is it the investor or us the savers?” he asked.
“For example you have a certain scheme and its asset base was Shs100billion and by the end of the financial year its tax base has gone down to Shs90billion, so who suffers this loss? … Of course the private player,” he added.
According to Mr. Begumisa, it is better to make amendments to the NSSF Act than allow more players join the industry.
“We think instead of opening up the space and having people who say they can do these things better..we’ve seen it happen in other countries… We had better change the NSSF Act then we can all benefit from this liberalisation.
“The NSSF act needs to be amended so that when we eventually retire, we are sure that there will be adequate cash flow that will cater for all claims that will come to the institution.”
On ICPAU’s Silver Jubilee celebrations, Begumisa unveiled new offices for the institute as well as taking journalists through the 25 year journey of the institute.
He revealed that when they had just began in 1992, the institute registered only ten members annually in its first years. However, the trend changed with time and currently they register hundreds of new members every year.
“We’ve grown as a member based institution from 79 to over 2,800 CPA members today,” Mr Begumisa said.