The investmentswere in government debt, real estate, licensed collective investment schemes, loans to corporate and cooperative societies, commercial papers, promissory notes and corporate bonds.
In his presentation at the 25th Annual PPF Pension Fund meeting in Dar es Salaam mid this month, the fund’s Investments Manager, Selestine Some, noted that other areas were non-income earning property and deposits with licensed banks and financial institutions.
Some said about 664.86bn/- was in government debt, including treasury bills and bonds being 31.9 percent of total assets, while 210.01bn/- are direct loans to the government.
He also noted that the fund invested about 208.7bn/- in real estate, which was 10 percent of the total assets, while deposits with licensed banks and financial institutions was 287.28bn/- and investment in licensed collective investment schemes stood at 105.18bn/- - being five percent of the total assets.
Meanwhile, Somesaid that by December 31, 2015, PPF Pension Fund disbursed 92.28bn/- to its 60 Saccos, with low interest rate of 10 per cent to members.
He underscored that the service was introduced in 2004 to assist PPF members to start businesses while still at work, access loans at low interest rate and affordable conditions –with a loan period of between three and five years.
Speaking when opening the conference, the Deputy Minister for Finance and Planning, Dr Aishatu Kijaji, said the government had already issued directives to employers to submit their employee’s contributions to pension funds on time, failure of which serious legal action would be taken against them.
Dr Kijaji also said that the government had directed all employers to ensure that their workers possess valid contracts and that they are registered with pension funds, including meeting the statutory obligations on time.
The deputy minister pointed out that her ministry has already directed the central bank to prepare a non-cash bond to pay the outstanding debt of 225bn/-that it owes PPF.
She went on to say that the government is coming up with a plan to pay all debts and that it will ensure all workers’ contributions in institutions that receive subsidies reach them on time.
“The government will continue to ensure that pension contributions for employees and institutions which receive subsidies from the government are paid on time,” she said.
She noted that her ministry will consult with the Prime Minister’s Office (Policy, Parliament Affairs, Labour, Employment, Youth and Persons Living with Disabilities) to find a lasting solution to the issue of members withdrawing from pension funds prior to retirement.
The 25th PPF Pension’s two-day meeting specifically discussed PPF Annual Report and Accounts for the year ending June 2015, the fund’s review of operations, membership registration, collection and benefit payments as well as PPF report on investments.
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