Trust us, says SSC

THE Social Security Commission is capable of handling its own investments and does not agree with a proposed law to gain ministerial approval first before investing money.

SSC Acting Chief Executive Officer David Keendjele told a National Council committee yesterday that it would be sufficient to regularly report on their investments to the Finance Minister to safeguard public money. Like several other parastatals that testified on the State-Owned Enterprises bill this week, Keendjele said an investment policy stipulating guidelines and requirements approved by the Minister responsible for a SOE would suffice..”Investment guidelines in the investment policy is the best approach instead of them getting involved in the day-to-day investments of the SOE,” said Keendjele.The committee did not challenge Keendjele’s recommendation on investments as opposed to that stipulated in the bill, despite the SSC being at the centre of last year’s most publicised corruption scandal because of a botched investment.A High Court inquiry had to be initiated to track down N$30 million in public funds invested with inexperienced investment companies.In 2002, mismanagement and bad investment decisions also sparked a Presidential Commission of Inquiry into the affairs of the SSC.The SSC has also seen its last two CEOs axed because of mismanagement.In terms of the bill, SOEs will have to get approval from the Minister of Finance and the Minister in charge of the SOE before investing any money.The SSC agreed with other parastatals that said this was an unrealistic expectation if they were to make investments with good returns.The market dictated that they acted without delay, parastatal representatives said.”Investments require a quick decision.There might be delays that could cause a loss of opportunities,” said Keendjele.Keendjele said while the SSC supported a move by Government to introduce legislation to govern SOEs, many of the provisions would prove unworkable in practice.Keendjele said the SSC would prefer the approval of its budget to rest with the board instead of a Governance Council comprised of Ministers only.Like several other parastatals that testified on the State-Owned Enterprises bill this week, Keendjele said an investment policy stipulating guidelines and requirements approved by the Minister responsible for a SOE would suffice..”Investment guidelines in the investment policy is the best approach instead of them getting involved in the day-to-day investments of the SOE,” said Keendjele.The committee did not challenge Keendjele’s recommendation on investments as opposed to that stipulated in the bill, despite the SSC being at the centre of last year’s most publicised corruption scandal because of a botched investment.A High Court inquiry had to be initiated to track down N$30 million in public funds invested with inexperienced investment companies.In 2002, mismanagement and bad investment decisions also sparked a Presidential Commission of Inquiry into the affairs of the SSC.The SSC has also seen its last two CEOs axed because of mismanagement.In terms of the bill, SOEs will have to get approval from the Minister of Finance and the Minister in charge of the SOE before investing any money.The SSC agreed with other parastatals that said this was an unrealistic expectation if they were to make investments with good returns.The market dictated that they acted without delay, parastatal representatives said.”Investments require a quick decision.There might be delays that could cause a loss of opportunities,” said Keendjele.Keendjele said while the SSC supported a move by Government to introduce legislation to govern SOEs, many of the provisions would prove unworkable in practice.Keendjele said the SSC would prefer the approval of its budget to rest with the board instead of a Governance Council comprised of Ministers only.