Uganda’s Pension Crisis!!! [Guest Blogger]


The tales of pensioners in Uganda are harrowing. Many of the retired and elderly have over time given up on pursuing their claims as a result of a system that has morphed into one big labyrinth of unscrupulous officials. Without doubt, the current approach towards managing pensions in this country has erased even the little left patriotism that our elderly had for our nation. They laboured for years without end, often under the meanest of circumstances with the hope that they would have a comfortable retirement while reveling in a prosperous country that they helped grow. It is no wonder that many who have not yet retired and have the means are engaging in grossly obscene corrupt activities fully knowing that they are trying to guarantee a comfortable retirement for themselves as well as a smooth start for their children and grandchildren.

A considerable number of public sector pensioners/retired civil servants have been subjected to untold suffering at the hands of the highly-incompetent and inherently corrupt Ministry of Public Service. The Ministry is unable to pay out pension benefits to bona fide beneficiaries in a timely manner and in the correct due amounts.

The print media has been awash with stories of pensioners who have made the dreaded journey to the Ministry of Public Service for many a year with no success. Some pensioners have died before they could receive their pension entitlements because of entrenched corruption, gross ineptitude and calamitous pension administration.

At the same time, several officials from the Ministry of Public Service including Permanent Secretary Jimmy Lwamafa, Principal Accountant Chris Obey and Director Steven Kiwanuka Kunsa were recently found guilty of fraud, corruption, false accounting and diversion of public funds. The officials that should be the stewards of public funds are eating from the trough and robbing the citizenry in broad daylight.

The Government has also accumulated arrears that relate to pension liabilities and there is no sense of urgency in clearing the arrears under the so-called Hakuna Mchezo dispensation. The structure of the public service pension scheme is also a source of problems because it is an unfunded scheme that operates on a “Pay-as-You-Go” basis. This implies that the funding for pensions is withdrawn from the Consolidated Fund as pension entitlements are due for payment. The Pay-As-You-Go system exposes pensions to the vagaries of the Government’s cash flow constraints.

The World Bank in its Economic Update of June 2014 entitled “Reducing Old Age and Economic Vulnerabilities” dealt with the Uganda pension system and provided some proposals regarding public sector pension reform. The World Bank drew attention to the fact that reforms were critical in order to ensure the transparent and proper governance of pension funds, building the institutional capacity specifically within the Ministry of Public Service and the financial implications of moving to a funded public service pension scheme. The report serves as a possible spring-board for the development and implementation of a pension system that addresses all the flaws identified above.

Against this background, it is essential that the Government of Uganda urgently sets up a fully-funded defined pension plan or defined contribution scheme for public servants to which employee contributions and employer contributions will be remitted. The management of the fund could be outsourced to a licensed asset management firm which would report to the Trustees appointed by the beneficiaries of the pension scheme. It is essential that the Pension Plan/Defined Contribution Scheme must be fully autonomous and properly regulated by the Retirement Benefits Authority.

No Government official should have any decision-making role and independent audits and actuarial valuations should be conducted annually as part of the accountability mechanisms.

These measures could potentially resolve the current mountain of challenges facing public service pensioners. The Pension Fund will also have an asset base that can provide long term capital for investment across the economy through listed companies, unlisted entities, real estate and government and corporate debt.

By John Rukundo, Financial Analyst/Guest Blogger

Are Kampala’s Elite juicing their way to Cancer?


If there is one thing I have respect for Kampala’s middle class, it’s their quick adoption of anything regarding healthy living. There was a time when the social status of someone was directly proportional to their weight. The bulkier you were, the higher the social standing you had.

We then got introduced to the world of Gym, Sauna and Steam bath. It became the rage around town. Someone worthy their corporate pedigree had to be seen to have a sauna/steam bath as part of their daily programme. The consciousness of weight loss begun at this stage. However, most of the disciples thought that they would still maintain their beer swigging, chicken and pork eating habits expecting the sauna to automagically take away the weight.

The sauna era then paved way for Jogging. To-date, jogging is still taken seriously with groups of drinking buddies or even corporates coming together once or twice a week to jog a couple of kilometers.

While this was going on, we were ushered into the era of Juicing !!!!.

What is Juicing? Juicing involves a process where the natural liquids, vitamins, and minerals are extracted from raw fruits and vegetables, this process strips away any solid matter from the fruits and vegetables and you’re left with liquid only.

Everywhere I turn lately, a friend or two are talking about juicing. They share marvelous stories of how it has changed their lives, how they’ve lost weight, the elderly have seen their ailments reduce, alcohol filled bodies have been successfully detoxed etc.

While I’m in awe of all these testimonies, I want to share a few pointers on the likely dangers a juicer would expose themselves to in Kampala.

The average urban shopper will purchase their vegetables and fruits from the traditional local markets, Supermarkets as well as roadside sellers. Often times the presentation of these products is so attractive that one can hardly question their origin.

However, a few disturbing issues are rife in Uganda’s farming communities and unless urgent attention is given to them, the consumers will bear the brunt through unintended food poisoning as well as disease accumulation.

Issue 1:

It is a fact that the presence of banned pesticides is rife in this country. This was in part brought about by the liberalisation of agro-chemical inputs which weakened quality control. Chemicals are banned for various reasons, majority of which are health side effects on humans. More insights on this can be got in this article.

Issue 2:

There is widespread indiscriminate use of pesticides. Once I went to the market and out of curiosity asked the tomato seller why the tomatoes had a whitish substance on them. She confidently told me that the substance was a pesticide sprayed after harvest to increase the shelf life of the tomatoes as well as prevent pest attacks during storage. I did corroborate this assertion with a friend that operates a retail shop.

tomatoesStandard agricultural practice does not recommend applying any pesticides to crops due for harvest within two weeks. This is due to the time it takes for the chemicals to breakdown and avoid entry into the human body. A 2013 Study among tomato farmers in Uganda found that no farmer was applying the recommended concentration of Dithane M-45. Their application varied from 3-7 times the recommended levels. This same Dithane is the one sprayed on the tomatoes after harvest. Its widely used on other crops like lettuce, onions and potatoes. Its active ingredient mancozeb is a known hazardous air pollutant and could cause cancer. It is known to have thyroid effects and when ingested by pregnant women can lead to impaired cognitive function and motor development in children.

Issue 3:

Storage of Fruits and Vegetables by most vendors is questionable. On an early morning trip to Buikwe district, I once found some vegetable vendors retrieving their greens from the irrigation canals of the Lugazi Sugar plantations where they had been stored overnight. As an avid user of this route through the plantation, I know how intense the use of chemicals when growing these sugarcanes is. For someone to keep vegetables there implies that they get into contact with these chemicals and the unsuspecting public become the victims of any health side effects.

It is also common knowledge that some vendors of fruits and vegetables in Kampala often store them overnight in water bodies like the Nakivubo channel among others. These are the very fruits you will gladly ingest raw after being nicely spliced and strategically positioned by the road side on a hot day.

Issue 4:

The relevant government agencies lack the ability to monitor pesticide residues in agricultural products. This is one of the reasons why we always wake up late when the EU is banning our produce. Farmers and agro chemical dealers are operating in an unregulated environment and it has become a dog eat dog world. They don’t seem to bear concern for the wellbeing of the food consumers.

What does all this mean to a Juicer?

Since juicing largely involves consumption of raw fruits and vegetables, the chances of one ingesting harmful chemicals while at it is high if they do not have knowledge of the source of the foods they are consuming. Take it from me, you can shop from the trending supermarkets or grocery shops and the agents there may convince you that their suppliers are carefully selected and regulated to ensure you get top notch products. As an individual that knows quite abit about the agriculture value chain, those are mere lies. Many of these retailers have no idea about the practices of their suppliers when growing the produce. All they see are clean vegetables and fruits presented to them.

As you juice, I advise that you consider growing your own stuff. Most of these vegetables and fruits can be grown in your backyard (if you’re serious) and the beauty is that there are groups like the Backyard Gardeners that have a good support network on WhatsApp.

If you aren’t ready to grow your stuff, then start today and scout for a good vegetable/fruit grower who is ethical enough to meet your expectations.

Otherwise, in the pursuit of great health, many are risking even worse ailments by merely jumping onto the bandwagon without assessing the dangers.

Happy Juicing.

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