Nujoma leaves SSC beneficiaries stranded
MATHIAS HAUFIKU
WINDHOEK
The Social Security Commission (SSC) is unable to pay bills and settle claims from beneficiaries to the tune of N$18 million because its budget has not been approved by labour minister Utoni Nujoma.
Namibian Sun has it on good authority that SSC chief Milka Mungunda is currently pleading for permission from Nujoma to settle urgent invoices such as maternity payouts, municipal bills, salaries and Covid-19 stimulus payments while waiting for the approval.
It is understood the budget was supposed to have been approved by 28 February.
The labour ministry, however, maintains it is not to blame for the delay, adding that the SSC board has not answered questions on some aspects of the budget.
“In the meantime, without approval of the budget, the finance department cannot pay the claimants. This has negative implications on the commission and its operational mandate as the claimants rely on these benefits,” Mungunda told Nujoma in a letter earlier this week.
She also told him that the payments under the Covid-19 programme have been placed on hold due to the delayed budget approvals.
Crying mothers
The SSC makes monthly stimulus payments to about 300 beneficiaries.
The commission’s salary bill and other statutory payments such as staff medical aid, levies, pension and leave gratuity stands at N$12 million.
Money to service its ongoing projects is also at risk while support to beneficiaries under its student bursary programme also faces potential financial shortcomings.
Some bursary beneficiaries have already alerted Mungunda’s office that they are on the verge of being chucked onto the streets by their landlords.
A source privy to the matter said: “Lactating mothers are here crying for their money. Imagine, while bursary and study loan holders can’t even have their fees paid.”
Failure to oblige to contractual and statutory payment obligations, Mungunda warned, could have serious reputational risks, while late payments on utility bills and rentals could result in penalties.
Efforts to get hold of Nujoma proved futile as his phone went unanswered.
We need clarity
Meanwhile, the labour ministry’s executive director Bro-Matthew Shinguadja yesterday confirmed the budget approval delay.
“We are seized with the matter. We had a meeting with the board earlier this month and there were some issues that the minister wanted clarity on. As soon as we get that clarity, the budget will be approved.”
He said a meeting between the ministry and the commission’s board is scheduled for tomorrow.
Mungunda sent out at an email to all staff members yesterday morning informing them that the situation is being attended to and that it might be sorted out by the end of this week.
She also alerted employees that there might be salary delays if the budget is not approved in time.
She urged the finance department to have all funds ready so that bills can be settled as soon as the budget is approved.
WINDHOEK
The Social Security Commission (SSC) is unable to pay bills and settle claims from beneficiaries to the tune of N$18 million because its budget has not been approved by labour minister Utoni Nujoma.
Namibian Sun has it on good authority that SSC chief Milka Mungunda is currently pleading for permission from Nujoma to settle urgent invoices such as maternity payouts, municipal bills, salaries and Covid-19 stimulus payments while waiting for the approval.
It is understood the budget was supposed to have been approved by 28 February.
The labour ministry, however, maintains it is not to blame for the delay, adding that the SSC board has not answered questions on some aspects of the budget.
“In the meantime, without approval of the budget, the finance department cannot pay the claimants. This has negative implications on the commission and its operational mandate as the claimants rely on these benefits,” Mungunda told Nujoma in a letter earlier this week.
She also told him that the payments under the Covid-19 programme have been placed on hold due to the delayed budget approvals.
Crying mothers
The SSC makes monthly stimulus payments to about 300 beneficiaries.
The commission’s salary bill and other statutory payments such as staff medical aid, levies, pension and leave gratuity stands at N$12 million.
Money to service its ongoing projects is also at risk while support to beneficiaries under its student bursary programme also faces potential financial shortcomings.
Some bursary beneficiaries have already alerted Mungunda’s office that they are on the verge of being chucked onto the streets by their landlords.
A source privy to the matter said: “Lactating mothers are here crying for their money. Imagine, while bursary and study loan holders can’t even have their fees paid.”
Failure to oblige to contractual and statutory payment obligations, Mungunda warned, could have serious reputational risks, while late payments on utility bills and rentals could result in penalties.
Efforts to get hold of Nujoma proved futile as his phone went unanswered.
We need clarity
Meanwhile, the labour ministry’s executive director Bro-Matthew Shinguadja yesterday confirmed the budget approval delay.
“We are seized with the matter. We had a meeting with the board earlier this month and there were some issues that the minister wanted clarity on. As soon as we get that clarity, the budget will be approved.”
He said a meeting between the ministry and the commission’s board is scheduled for tomorrow.
Mungunda sent out at an email to all staff members yesterday morning informing them that the situation is being attended to and that it might be sorted out by the end of this week.
She also alerted employees that there might be salary delays if the budget is not approved in time.
She urged the finance department to have all funds ready so that bills can be settled as soon as the budget is approved.
Comments
Namibian Sun
No comments have been left on this article