Kobello
JF-Expert Member
- Feb 20, 2011
- 8,637
- 7,920
I totally agree with you!....Government failed us so many times and i really can't see the public interest in General tyres,that company had problems since Nyerere times(Remember LORNHO too).NSSF's monies are belonging to its members for meeting their old age-retirement benefits the rest are subsidiaries. Whatever investment that is made by the fund managers requires compliance to their investment policies without external (political and government) interventions.
If the NSSF management have had a through recovery plan over General Tyre facility - for which auctioning/disposing off of securities over other plans, like conversion of debts into equity and revive its operations, were thought to be the best feasible recovery option it means that POAC's decision is irrational and goes against best financial investment practices.
Simply put POAC's decision goes against practices of good governance for pension funds and puts contributors/members at risk. This is the beginning of the bad end given NSSF tendency of heavy reliance on single borrower i.e government (s). It is on this basis that one a prudent fund manager will start to revisit its investment strategies as internal debts increases and financial muscles of government gets back to 1990s.
Politics killed Tanesco and other public corporations with this trend Tanzanian pension funds will be of no exception, I predict. We should stop politicizing technical matters like this as NSSF and other financial/non financial institutions are investing in socially desirable investments to keep them financially viable!
I present.
God Bless Tanganyika!