The Social Security and Housing Finance Corporation (SSHFC) on Wednesday, July 25, 2018 appeared before the National Assembly Select Committee on Public Enterprises presided over by Honourable Halifa Sallah at the National Assembly in Banjul.
The SSHFC Officials presented their Annual Report and Financial Statements for the year ended 31st December 2015.
The report, amongst others things indicates the Corporation role as the sole pension provider to employees of both public and private sectors in country. It also operates housing schemes on mortgage or commercial basis to the general public.
Augustus Prom, a private audit firm reported that the Corporation”s internal audit reports does not indicate its implementation status of audit issues raised in the previous reports. It fails to provide the Annual Work Plan of the Internal Audit Unit for review.
The private audit firm observed that the Corporation lacks adequate collateral in place to ensure the recovery of staff loans. The Corporation fails to establish a linkage of the income to the awarded contracts to ensure that the contracts in place are valid.
“There is no mention of ‘spot check cash-counts’ (without notification) cash counts for cash collection areas within the Corporation,” Augustus Prom told National Assembly Members.
The Auditors added the lack of mechanism to ensure loan agreements are in place for loans to be disbursed. It is recommended that the Internal Audit Unit developed a work plan with approval from the Board’s subcommittee.
Muhammed Manjang, the Director General of SSHFC said the Corporation has recorded a consolidated net surplus of D5.47 Millions where the Federated Pension Scheme (FPS) accounted D21.10 Millions, National Provident Fund (NPF) accounted a deficit of D15.06 Millions while the Housing and Finance Fund (HFF) accounted a deficit of D4.37 Millions whereas the Industrial Compensation Fund (ICF) accounted D3.80 Millions.
DG Manjang revealed that the total Net Assets grew by 4% from D5.49 Billion in 2014 to D5.68 Billion in December 2015 of which D1.46 Billion was accounted for by the FPS, whilst NPF, HFF and Industrial Injuries Compensation Fund (IICF) contributed D3.32 Billion, D535.53 Millions and D366.60 Millions respectively.
“Members’ Fund grew by 5% to D5 billion during the year under review,” DG Manjang said.
Abdoulie Cham, Finance Director explained that the surplus for the year 2015 was D21,100,000 Millions which in his words was less than the year 2014.
According to Augustus Prom Audit Firm the NPF of which its total equity investments amounted to D1,152,000,000 has an amount of D709 million that is non-performing equity comprising of 61.55% of the total equity of the NPF.
A total loan of D1,157,000,000 Billion was disbursed to member institutions that have been non-moving since 2013. There was no repayments for a period of three years that the Auditors opined could have negative impact on the Corporation if the trend continues.
On the National Provident Fund, the Finance Director disclosed that the Corporation for the year 2015 registered a deficit of D15,062,000 Millions whereas it accounted for D25,534,000 as a deficit in 2014.
Meanwhile, the Housing Finance Fund (HFF) has registered a deficit of D4,367,000 at the end of the year 2015 whilst the previous year 2014 was D3,311,000 Millions. The sittings continues tomorrow.