Government finally starts to repay Sh6.4tr it owes PSPF

Dar es Salaam. The government has started repaying part of the loan it owes the Public Service Pension Fund (PSPF), a senior official has said.

PSPF director general Adam Mayingu said in Dar es Salaam at the weekend that during the past three years, the und has received a total of Sh90 billion as part of the Sh6.4 trillion loan owed to the government.

“We are happy that the government has indicated that it is willing to repay that loan….during the previous year, it repaid us Sh10 billion. Last year, we received Sh30 billion and this year, we have received Sh50 billion. The government has pledged to us that it will be giving us Sh50 billion each year during the coming year until it completes repaying the entire loan,” he told some 150 Bongo Movie artists who took part in a ‘Voluntary Pension Fund Contribution Sensitization” campaign that was organized by the PSPF.

The Sh6.4 trillion, he said, was mostly a result of an accumulation of unremitted members’ contribution from the Government since PSPF’s establishment in 1999.

In his audit on 126 public institutions for the 2011/2012 financial year, the Controller and Auditor General (CAG) raised a red flag over the performance of the PSPF, unearthing the Sh6.4 trillion loss and called upon the government’s immediate intervention.

“The fund is on the brink of failing to sustain itself if the government does not intervene,” the CAG, Mr Ludovick Utouh, told journalists in Dodoma in April last year (2013) shortly after he had submitted various audit reports he had earlier presented before the National Assembly as required by the constitution.