The Social Security and National Insurance Trust (SSNIT) has begun processes to audit the Trust to improve its operations.
The exercise is among others expected to inform the managers of SSNIT on the current position of the pensions’ regulator. It is also expected to give an understanding of what new measures ought to be implemented to make the pension Trust a competitive one within the sub-region and beyond.
The Director General of SSNIT, John Ofori Tenkorang who disclosed this to Citi Business News also explained that the audit is largely different from a forensic one on the operations of the Trust. “Since we are new we want to establish a baseline, as to the kind of SSNIT we are inheriting. It is not a forensic audit but a baseline one where they will come and look at all our operations. It is only after we have been able to do that then we will be able to roll out new policies,” Mr. Tenkorang stated.
The Vice President, Dr. Mahamudu Bawumia prior to the 2016 general elections asserted that SSNIT is facing huge financial constraints over mismanagement of the entity’s resources. Citing a World Bank report, he further warned that the actuarial valuation shows that the fund will become a cash flow negative in 2019 and all assets will be used up by 2031.
The former Director General of SSNIT, Ernest Thompson however dismissed such claims indicating that the Trust had implemented mechanisms to give value for money to contributors to the Fund. According to Mr. Tenkorang, the process towards the auditing commenced in May for Expression of Interest.
Four entities have so far been shortlisted and they are expected to submit Request for Proposals for consideration. The whole process is however expected to be concluded in August 2017.
“By the end of June there will have been selections made and we will give them a couple of months to do that and that brings us to the end of August to complete the process,” he added. Meanwhile SSNIT says it is working to improve its service delivery systems to its numerous clientele; comprising contributors as well as pension beneficiaries.
“While that is going on, I have basically charged my staff that there is something that we need to do which we cannot wait and that is improving the service delivery to our customers. Those are the pensioners on one hand who we pay and the contributors who give us the money to invest,” Mr. John Tenkorang asserted.