Possession of NSSF clearance now mandatory for private security operators to obtain license

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Kampala: The National Social Security Fund (NSSF) has established a partnership with Uganda Police Force to ensure private security companies comply with the remittance of social security contributions for their employees by making possession of NSSF clearance mandatory.

Under the partnership, the security companies will be required to obtain an NSSF clearance certificate as aprerequisite for an annual operation license.

At the announcement of the partnership, Patrick Ayota, the NSSF Deputy Managing Director said the partnership was formed to address complaints from the security companies’employees who feared that they would retire in poverty if there was no intervention.

We received over 245 complaints through our whistleblower platform from employees of private security companies between January 2018 and February 2019. That prompted us to carry out compliance audits and from our analysis, we found that over 7,000 workers’ contributions had not been fully remitted to NSSF, he said.

The investigation further revealed that about shs6.89 billion was held up in standard contribution arrears by security companies with over shs21.6bn of unpaid statutory penalties.

“Recovering these monies has been difficult mostly because these companies under declare information like number of employees and salaries paid. They also withhold financial records during social security audits.” Ayota said.

The partnership with Uganda Police Force will enable the Fund access information regarding employment records of private security personnel. It will also make it mandatory for security companies to obtain NSSF clearance before they can obtain a license to operate.

According to information from Police, there are 118registered private security companies operating in the country with about 42,972 employees, although 98 are registered with the NSSF.

Not all those registered with the Fund also comply with the 1985 NSSF ACT that requires all companies with more than 5 employees to remit social security contributions for their employees.

Andrew Sorowen, the Uganda Police Director of Special Duties said that police was ready to work with NSSF to address these issues. Effective this month, we shall not issue or renew any operating licenses to these companies unless they have proof of honoring their social security obligations.”

Police will also provide necessary data about these companies to the Fund to ease reconciliations.

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