Rwanda: RSSB Under Pressure Over Investment Choices
Rwanda Social Security Board (RSSB), the country’s only pension custodian, is under the spotlight once again, after a report looking into its investment decisions was released by the Auditor-General.
RSSB has been accused of investing pensioners’ money into ventures that have generated no return. The firm was accused of precisely the same failings in last year’s report. This is now the fourth year in a row that RSSB’s investment decisions have come under question.
The accusations follow a string of investment projects many would argue never should have been given the go-ahead. Most recently, the body came under fire for its investment in mega structures built in rural parts of the country.
Unsurprisingly, the buildings proved difficult to sell and the body then hired CVLD to manage and let out the properties. Pensioners have voiced concerns on many occasions that RSSB has been investing in risky projects that don’t guarantee any return.
The latest report published by the Auditor-General reveals the extent of the problem. It says 16 equity investments costing Rwf16 million returned absolutely nothing in the year ending June 2015, but the pension body went on to invest a further Rwf16 billion to three of the investments.
RSSB defends actions
RSSB has spoken out to defend its investment choices, asking people to show patience. The body’s public relations and communications director, Moses Kazoora, claims the investments will eventually generate the returns expected of them.
“All the investments RSSB has ventured into are long term, you cannot expect to get returns the following day. These are investments that go with the country’s Vision 2020. In all the investments we make, returns cannot be immediate,” he told Rwanda Today.