Investment committee directs govt to clear 986.7bn/- PSPF debt

Committee on Investment and Capital (PIC) yesterday directed the government to ensure that it pays all the debt that it owes the Public Service Pension Fund (PSPF) to enable the scheme operates and fulfils its duties effectively.

 

The dept which amounts 986.7bn/- includes pensions for retired public servants and funds used in various social development projects.

Speaking in Dar es Salaam yesterday when the committee met with officials from the Ministry of Finance, some of the members expressed their dissatisfaction with the government on its dalay in paying the funds.

 

Special Seats MP Sophia Simba (CCM) urged the government to come up with a strong strategy on how it was going to resolve the matter, warning that if the social security fund would not be paid on time it would eventually go bankrupt.

 

“We want the government to clarify how it will pay its debt that it owes the public scheme,” she demanded.

 

Bunda MP Ester Bulaya (Chadema) also cautioned that if immediate steps were not be taken to solve the matter, the social security fund would collapse. 

 

“You have to fast-track the process of paying the debt, otherwise you are putting it in a difficult position, which may lead it to fail to fulfil its obligation of serving the public,” she warned.

 

Mikumi MP Joseph Haule (Chadema) also said that he has been receiving a number of complaints from retired civil servants in his constituency on the slowness of the government in paying their funds.

“Most of the contributors are government workers... worse enough, the government does not pay the contributions on time thus holding back their development,” he said.

 

PIC chairman Richard Ndasa (Sumve-CCM) insisted that the funds should be paid without delay to enable PSPF to work efficiently.

 

“There is about 453bn/- and 533bn/- that the government owes PSPF for retired civil servants and for funds used in social development projects respectively,” he disclosed.

 

Responding, Finance Deputy Minister, Dr Ashatu Kijaji, pledged that up to June, this year, the governemnt would pay PSPF 253bn/-, vowing to ensure that all the debt was cleared.

 

 “We are working to ensure that we pay all money the government owes pension funds so that they are able to operate effectively, including paying people who have retired,” she said.