He said the Authority is constrained in its oversight role over the Social Security and National Insurance Trust (SSNIT), due to the lack of express powers assigned the Authority.

SSNIT has been in the news over a $72 million software project, making some members question the viability of the fund.

[contextly_sidebar id=”CCgokAGpqB2PdX5CsTMn5mjDXwQRtXYy”]But speaking at a Graphic Business Forum on the pension fund on Tuesday, Mr. Osei Duah said the NPRA must be empowered to do more.

“I believe the problem we have is very simple – the entity that is supposed to regulate SSNIT, the national pension regulatory authority  is nowhere as powerful as SSNIT. I think all of you will agree with me on that. Until that change, I do not see anything changing. We need to have a situation where it becomes clear that SSNIT reports to the National Pension Regulatory Authority. We need to empower my good friend here [NPRA boss] and give him enough powers to summon the Director General of SSNIT and anybody including their board chairman to his office and query them,” he said.

The former SIC boss noted that, most people will clamour to be on the board of SSNIT instead of NPRA “even though that is a higher authority, and that should tell you why we are having the problems we are having. “

“So my point is that, we need to be a little more interested in what SSNIT is doing, we need to give the NPRA enough investigative powers,” he added.

Background

SSNIT is being investigated by EOCO for blowing $72 million on procuring and installing a software and other hardware systems known as the Operational Business Suite in a bid to digitize the Trust.

The cost, which was originally $34 million, later ballooned to $66 million and then to $72 million due to maintenance and additional infrastructure.

The Board Chairman of SSNIT, Kwame Addo Kufuor, in an earlier interview with Citi News, said about 15 people had appeared before EOCO as witnesses in the matter.

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By: Sixtus Dong Ullo/citifmonline.com/Ghana

The post Empower NPRA to do more – Former SIC boss appeared first on Citi 97.3 FM - Relevant Radio. Always.

[contextly_sidebar id=”mN0uvsww8BiBPiqGyD3ZFtrPcO6pHxDi”]According to the NPRA, the reconciliation of employee data must be completed before the money could be released.

“Now that they have full implementation on governance structure, we should let them come with solutions, come with the data that they have for their indebtedness and then we validate. Then together with the PWC audit, we should be able to transfer by June,” Deputy CEO of the NPRA, David Tettey-Amey Abbey told Citi Business News.

Public sector workers have been enraged over the continuous delay in the release of the funds which have been held up at the Bank of Ghana for over six years now.

The development is said to have led to the slow growth of some investment portfolios recently.

When asked how much has been collected and what has accrued, the Deputy CEO of the NPRA would not disclose the figure.

He explained that the there has been conflicting views on the amount as the figures presented to the transition team is being contested.

“I wouldn’t like to make that public. We have given it to the transitional team. We have also advised our sector minister. There are some contention issues and that is why we contracted PwC to conduct an audit at the fund level to validate.”

Citing the prevailing situation in the private sector, Mr. Abbey told Citi Business News his outfit has since June 2016 been releasing the funds due to the compliance and swift cooperation from the administrators of the private sector funds.

In his view, a private sector led approach should lead to an ultimate release of the locked up funds at the central bank.

“The private sector can testify that we have started transferring their monies to them. The trustees or the administrators that have been appointed send us their data, we validate and then we transfer. There can be some delays but I believe that it is better than the money sitting there and everybody making noise around it; so that is the solution.”

Since the implementation of the NPRA’s law in 2010, employers are to transfer the 5% 2nd-Tier pension contributions into the TPFA to be released subsequently after all data have been reconciled.

The transfer for the previous month is to be paid within 14 days of the following month.

In 2014, the Chief Executive of the National Pensions Regulatory Commission (NPRA), said the amount accrued since the coming into effect of the new pensions law in 2010 is estimated at over GH¢1.6bn.

The breakdown of the GH¢1.6bn were as follows: GH¢522m being contributions from private sector workers, originally paid to the Social Security and National Insurance Trust (SSNIT) and later transferred to the Bank of Ghana (BoG), GH¢490m being public sector workers’ contributions paid to the Controller and Accountant General’s Department (CAGD) and then transferred to the BoG, and investment income of GH¢600m from the two sources.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post We’re ready to release locked up pension funds – NPRA appeared first on Citi 97.3 FM - Relevant Radio. Always.