Mohamed Fuaad Daboh believes businesses cannot grow without trust backed by strategy. That is why since he was vested with the day-to-day administration of the National Social Security and Insurance Trust (NASSIT), the agency empowered to administer Sierra Leone’s National Pensions Scheme and to provide retirement and other benefits to meet the contingency needs of workers and their dependants, and he has raised the stakes. In this interview with Kelechi Deca, he highlights the issues at stake. Excerpts.
NASSIT was established by an Act of Parliament to provide retirement and other benefits to meet the contingency needs of workers and their dependants. To what extent would you say this has been met?
NASSIT is a well-conceived scheme, and it took off very well. There have been challenges over time, as a result of a number of risky investments that didn’t sit well with the public, as well as other issues bordering on the operations of the scheme. Since we arrived here, we have taken a number of steps to enhance our capacity to deliver on our mandate and to also earn public trust. While we continue to address these challenges, I can state with a level of confidence that we are capable of paying benefits to members without compromising the sustainability of funds, and we will continue to touch the lives of Sierra Leoneans, members and non-members of the scheme alike.
How would you describe the NASSIT scheme, what distinguishes it from other social security schemes operating in the country?
Unlike other schemes operating in the country that are mostly tax-based financed or donor-driven, NASSIT is a partly funded scheme, where members contribute while employed and receive benefits when they face social risks or on retirement. It is partly funded by employers.
In this age when technology is pivotal to virtually every area of life, how has NASSIT deployed technology in its operations?
Oh, you and I would agree that ICT is the way of the world in every sector, and social security administration is no exception. Timely and accurate payment of benefits is one area where the scheme has employed efficient and effective ICT support. Also, ICT has also been very useful in enhancing and maintaining beneficiary records, which improves the benefit payment systems. We have, over the years used technology to modernize operations through the establishment of the Electronic Documentation and Records Management System (EDRMS). This will lead to the full operationalization of an efficient biometric registration and verification system. We are also working on a complete replacement of our current Pensions Operating System (NAPOSII) with a highly efficient web-based Integrated Biometrics Pension Administration System that has the capacity to improve on our institutional efficiency.
The New Direction of President Maada Bio is keen on reducing poverty and enhancing the welfare of citizens. What is the role of NASSIT, as a social insurance scheme, in achieving this national objective?
We are aware that poverty reduction is a central policy objective of the Government of His Excellency Rtd. Brigadier Julius Maada Bio. Over the years, NASSIT has been very efficient in providing support to our members to mitigate the social and economic risks that push many individuals and families into poverty. Realizing that health shock is also one of the reasons why households fall into poverty, we have been taking the lead, as an institution, to establish a Social Health Insurance Scheme that particularly addresses health issues in the country.
You assumed leadership as DG of NASSIT slightly over a year ago, what would you like to highlight as key achievement that you have made and what are your immediate future plans for the institution?
My appointment as Director General of NASSIT in May 2018 came at a time when the institution was experiencing serious challenges and needed strong leadership. With this in mind, my initial action upon assuming office was to undertake structural reforms and policy decisions that would lay a stronger foundation for the efficient running of the scheme. We have redirected our focus to the Trust’s core business, namely, operations and benefits payments. We have developed a well thought-out Strategic Plan that will guide our actions in the next three years (2019 – 2021). We have also rebranded the image of the Trust, particularly in the area of service delivery. I am also determined to ensure that the scheme remains sufficiently liquid to meet its statutory obligations, even in the long-run.
NASSIT is one of the most important institutional investors in the country, with strategic stake in projects ranging from the agribusiness to the tourism sector – a function that some sectors of the society seem not to understand completely. What are NASSIT’s main criteria at the time of deciding in which projects to invest?
Investment is at the heart of the strategy of the scheme. It is crucial to the attainment of equilibrium, the solvency and the overall financial wellbeing of the scheme. One thing the public should know is that all investments are guided by the NASSIT Act. As always, investment decisions are made through the lens of safety, liquidity and yield of the investment, as well as its value and spread, the maintenance of the fund and the diversification of the investment portfolio.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.