Government To Borrow UGX 1 Trillion From NSSF To Build Headquarters For All Ministries, Agencies

Government To Borrow UGX 1 Trillion From NSSF To Build Headquarters For All Ministries, Agencies

By Uganda Online Media

The Government is planning to borrow Ugx1 trillion from the National Social Security Fund (NSSF) to build a headquarter that will house ministries, government agencies, and departments in a bid to save billions of funds that were being wasted on rent.

According to sources, the headquarters will be built in Bwebajja on Entebbe Road and the project will be supervised by the Ministry of Works.

The Gov’t intends to borrow the above funds from NSSF under Clause 1 of Section 30 of the NSSF Amendment Act which states:

“All monies in the Fund, including the reserve account, which is not for the time being required to be applied for the purpose of the Fund shall be invested in such investment as may be determined by the board in consultation with the minister responsible for Finance.”

Clause 2 of the amended section reads further: “…notwithstanding the provisions of any other law, the board may use in-house expertise or Fund managers in the investment under subsection.”

This idea was first mooted in 2017 when then-prime minister, Dr. Ruhakana Rugunda revealed that the government was in advanced talks with NSSF to build the government headquarters at Bwebajja.

“We have concluded the biggest hurdle, which was the cost of the land and now we have agreed on the price,” Rugunda said then, adding: “NSSF is funding the project as an investment. It will be recovered from the rent that ministries have been paying.”

The Bwebajja land that was previously owned by businessman Joseph Behakanira, who died in 2010, was purchased by NSSF in 2016 at a cost of Shs93 billion after a Cabinet endorsement.

Earlier in May 2022, opposition lawmakers asked the government to present, within six months, the roadmap to cease renting private properties and seek to develop domiciles for all institutions as a means of reducing unwarranted expenditure.

The lawmakers had suggested that before the budget for Financial Year (FY) 2022/2023 is approved, the government should brief the House on the progress in regard to the proposed government office headquarters at Bwebajja.

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