SSNIT Sector Fund collects GHȼ2.2m in 2011

Category: Insurance 2

The Social Security and National Insurance Trust (SSNIT) Sector Fund Consolidated Operational Performance Report for October 2011, indicates that the sector made progress during the third quarter of the year.

The sector collected GHȼ2,207,066.63 out of a targeted GHȼ2,164,500.00, which represents 101.9 per cent during the period under review.

The business entity cumulative amount collected from May 2005 to September 2011 therefore stands at GHȼ20,661,040.53.

Within the quarter 3,270 members were registered into the scheme representing 49.55 per cent of the targeted 6,600 people. The cumulative membership of the scheme as at the end of the quarter stood at 89,543.

A total amount of GHȼ670,944.37 was withdrawn from members Occupational Scheme Accounts, representing 30. 40 per cents of contributions collected.

The total operating expenses of the fund amounted to GHȼ1,053,256.03, representing 48 per cent of contributions collected for the period whilst a amount of GHȼ23,176.10 was paid in respect of 30 benefits claims.

Contributions collected during the quarter showed a marginal improvement on the amount collected during the period in 2010 despite the marketing field staff impasse encountered in the beginning of the quarter.

“The improvement was achieved on the back of the far-sighted strategic interventions implemented by the management of the fund,” the report said.

In another development Mr Seth Kweku Baidoo, Local Union Chairman of the Industrial and Commercial Workers Union of the sector has petitioned the Director General of SSNIT about poor conditions of service of the workers.

He said the SSNIT Informal Sector (SISF) has run into financial crisis, which has culminated into the non-payment of November 2011 salaries, with a high probability that management cannot make payment for subsequent months.

“This could result in operations of the fund grinding to a halt,” he warned.

He alleged that management is not communicating and clarifying the true state of affairs and the decisive steps being taken to address the situation.

Mr Baidoo claimed that management is blaming SSNIT for refusing to meet its commitment of releasing to SISF the allocated funds to support its budget and financial obligations.

“…SSNIT has arbitrarily delayed and stretched beyond measure all the processes of reviewing and approving the budgetary requirements of the fund for…2009, 2010 and 2011 to the extent that the Fund’s Executive Management had to recourse to the Finance Minister and the Office of the President to step in to impress upon SSNIT to release funds to SISF.

“…Executive Management has duly submitted all requested financial and operational records of which the Audit Department of SSNNIT and a committee set up by the SSNIT Board have found to be clean, accurate, transparent and credible.”

Mr Baidoo who also made a number of allegations about mal administration against management asked that the members should be asked to step aside for a full scale forensic audit to be conducted into the activities of the fund.

The SISF should also be changed from a limited guarantee company to one limited by shares so that it can explore other business opportunities offered by the enactment of ACT 766.

Source: GNA

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