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MP cautions on private social security schemes
2008-04-16 09:49:55
By Lydia Shekighenda, Dodoma
The government should be on guard when embracing private players in the social and security schemes, Tabora Urban MP Siraju Kaboyonga (CCM), told Parliament yesterday.
The legislator sounded the alarm when contributing to the Social Security Bill tabled by the Minister of Works, Employment and Youth Development, Prof. Juma Kapuya, in the House yesterday.
The MP said the government should take precautionary measures in accepting private investors in the social and security sector so as to avoid the danger of inviting dubious investors.
``There is great possibility of embracing conmen, thus occasioning huge loss of money if the government will not be careful,`` he said, adding: ``We must set clear rules, regulations and procedures to guide investors in this sensitive sector. We will lose a lot of money if we open doors to the investors just like that,`` he said.
Kaboyonga cited an example of one Britain-based company, by the name of Maxwell, which invested in the social security schemes and later on mysteriously disappeared with the members` money.
He said local social security institutions had great financial capabilities but had not invested in development projects.
The legislator said social security institutions could invest in development and income-generating projects which could be beneficial to the citizens and the nation as a whole.
The MP urged the government to include social institutions in the country`s development programmes, such as treasury bonds.
Kaboyonga, however, underscored the need to harmonise the operations of social security institutions so as to avoid unnecessary competition.
Eustace Katagira (Kyerwa, CCM) criticized social security institutions for failure to update members’ information.
``It is high time these organizations issued public financial statements at least once per year so that their members would know how much they had contributed,`` he said.
The system, he said, would help contributors to pressure their employers to take their contributions to respective institutions.
The Deputy Chairman for Parliamentary Standing Committee of Social Affairs Development, Haroub Masoud, said the bill was aimed at supervising and controlling the social security sector.
Endorsement of the proposed bill, he said, would ease coordination and supervision of all social security schemes.
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