{UAH} NSSF investments in Umeme followed right legal procedure

NSSF investments in Umeme followed right legal procedure

Daily Monitor

By Geraldine Ssali Busulwa

Comments 1:

Good investment for savers as their value has increased enormously, just wonder if the board invests in whatever is good in the market without any consideration for issues surrounding business ethics/ stakeholder reservations, perhaps a need for some policy guidance on that put in place to safeguard decision makers, since the perception is MOF/ MOLabour other supervisor may need to advice. This deal was bound to bring controversy, by the looks of it Umeme seriously needed NSSF funds and the later could have dictated the timing of IPO anyway (just an opinion). Legally or not there are other factors to consider, guess lessons learnt. In developing economies money is everything while in developed countries, some investment opportunities may not be taken lightly however good they are (e.g. animal rights group may not like their fund invested in companies that carry out research or testing using animals, so that needs to be managed carefully). Safeguards in terms of clear policies that are transparent would help, in this case MOF's advice that seem as if purely advisory couldn't be taken lightly one just needed to engage the minister and obtain a brief written statement (typical oversight and recklessness and aggrandisement by the board or usurp of authority without thinking outside the box, intuition). You can get away with that in the context of a private company but still Umeme has lots of such rights in their dealing with their Regulators & stakeholders (specified unequivocally in their relationship with the regulator), but they don't just brush it off and proceed or say go it alone whether advisory without seeking, engaging and obtaining some written input from the supervisor (always smart). With the kind of funds and stakeholders they are dealing with decision makers at the helm of NSSF should try and be seen to be prudent and exercise good governance, it is a tricky establishment and thus death bed of careers so to speak. It is a pity that young promising professionals like Geraldine are not having to defend using text book approach,a reaction that can be seen as a political office fight and could be misconstrued as undermining the minister of finance or in most stakeholders view the powers that be. Doing nothing and holding on even if you missed the boat might be a good decision sometimes. I used to work for RBS who went for a bad deal (toxic) that Barclays I think had thought it was risky and overpriced, Fred (the shredder), the CEO at the time was probably looking at killer deals to raise shareholder value and earn himself hefty bonuses, hmmm it brought down RBS.

Comments 2 (from concerned citizen)

Indeed. Perhaps the most disturbing part for me is for GoU to have proceeded to approve the sale whilst the adhoc committee report was being tabled in parliament during the same season. I feel our Govt lacks the will to enforce  governance and uphold the public interest. It seems to me that decisions are driven more by selfish ambition than the desire to pursue the national good.
 
The other players are only manipulating a system which at the moment is willing to entertain their expedition regardless of the repercussions it may generate for the future generations. This has always been Africa's problem. The outsiders have understudied our weaknesses and they will continue to exploit us unless we transform from our hunter mentality to a farmer's. A farmer unlike the hunter, studies the weather patterns, the crop behavior, the soil potential, etc and at harvest, he disposes off some and leaves seed for the next season. He grows the skill of planning, discipline and doing some critical thinking to remain afloat in the farming occupation. Because for as long as he does not look after the soils, does not watch the weather patterns or at worst consumes all the seed leaving none for the next planting season, he will perish.
 
So for me this translates into the wider African  challenge, which is that whilst we believe we are independent, we are still colonized. We do not believe we have the power to determine our future; that we can get out of this rut of dependency; that we can turn around this vicious cycle of poverty, disease and ignorance provided we determine to embark on the journey by making tough decisions today so the future can benefit.
 
I am done believing that any outsider comes here for our good. The objective is plain and simple: what can they reap from here at the least cost and at the quickest time possible. It is never about making it better for Africa, but about keeping us in the rut so we can look to them for providence, yet they enrich themselves with our own resources so as to provide us aid.
 
We need a paradigm shift and the right people in positions of influence/governance.