The Ghana Trades Union Congress (TUC) announced last Friday said it would petition parliament to conduct a second investigation into media accusations that the Social Security and National Insurance Trust (SSNIT), which takes care of pensioners, is mismanaging workers' contributions.
The Serious Fraud Office (SFO) last week ordered an investigation into reports of mismanagement and corruption at SSNIT. Mr Kwasi Adu Amankwah, TUC secretary-general, said at a press conference that parliament has a greater responsibility to the workers than the SFO.
This is an indication that the TUC mistrusts the extent of the SFO investigation. "Parliament as the people's representative has a greater mandate to investigate how the people's money is managed," Amankwah said. "Besides, SSNIT is an institution owned through the contributions of workers."
When asked if the TUC sees the SFO as incompetent even though a constitutional body, Amankwah said "Contributors should have a greater say in the affairs of SSNIT and not a body divested from the authority of the people".
He said the TUC does not think it would be a waste of resources having parallel investigations. Amankwah said over the years TUC has made known its doubts about the operations of SSNIT and its investments.
"Over the years, we have not been satisfied with the operations of the Trust, and the TUC at every point has laid bare the dissatisfaction of our members," he said. Amankwah said a study commissioned last year by the TUC proposed amendments to the SSNIT Law.
The study called for a reduction in the number of government representatives on the board, an increase in the workers' representation, additional benefits to contributors and for the board members to appoint its chairman.
Government appoints eight people to the board of SSNIT. Six come from employers and employees, two of them from the TUC. Amankwah said the study also recommended the board - instead of the government - appoint SSNIT's director-general.
Amankwah said the TUC has recommended to SSNIT, without response, that the trust makes investments with long and short-term yields to increase the scheme's funds. He said SSNIT should reduce sharply annual administrative costs of 23 per cent of total income.
Amankwah said retrenched or unemployed workers who have made the minimum 240 months contribution to the pension scheme should be eligible for unemployment benefit. The TUC boss proposed that any calculation for old age for contributors who are unable to satisfy the minimum contribution period should be paid according to the prevailing treasury bill interest rate, instead of half the interest rate.
Amankwah said the computation of pension based on the average of the contributors’ highest of three years of earnings should be continued. He urged SSNIT to stop paying student loans and instead let another government agency handle the loan scheme. "Ghana needs a national social security institution, and we are aware of the view that SSNIT fulfils that role," Amakwah said. " Like any human institution, the Trust may have its shortcomings. "It may well be that some of the investment policies of the Trust were miscalculated and that some management practices have not been in the best interest of workers."
