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More funds sought to implement social security schemes

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KATHMANDU, Aug 25: Social Security Fund Management Committee (SSFMC) -- the authority formed to implement social security programs -- has asked the Ministry of Finance (MoF) to provide it Rs 29.4 million for the implementation of the program.



Officials of the committee said they have sought additional amount from the MoF to develop a multi-dimensional database system and arrange necessary infrastructures.[break]



Violating existing financial laws, the MoF had diverted a large chunk of social security fund, which workers had generated by paying social security tax (SST), affecting the implementation of the program. Though workers had paid well over Rs 450 million in the fund during 2010/11, the MoF has allocated only Rs 100 million for the fund.



That is not all. The committee, which has just been able to form an office, was provided only Rs 10 million as an operational cost. The committee had requested the government to allocate it Rs 39.4 million to set up office and complete necessary arrangements to implement the programs.



“We are sad that the MoF provided only a nominal amount to set up office and implement the programs,” said Krishna Dhakal, director of the SSFMC. “So, we have asked the government to provide additional amount because with the amount at hands we will neither be able to set up office nor can implement the schemes.”



The government has directed the committee to implement three social security schemes -- workplace accident, reproductive health and health insurance within the current fiscal year.



Dhakal said the committee has already submitted a final draft of its program to the Ministry of Labor and Transport Management, requesting the latter for additional budget.



“The MoLTM has already forwarded the draft toe the concerned ministry,” added Dhakal and warned the committee will not be able to implement any schemes in this fiscal year if the MoF refused to release additional amount.



Purna Chandra Bhattarai, joint secretary of MoLTM, said the additional amount has been sought to develop database system and to arrange necessary infrastructures at the office. “We need a complete database before starting the program, as no one knows for sure how much contribution amount has been collected from the employers or employees so far,” added Bhattarai.



A seven-member committee under the leadership of director general of the SSFMC has been formed to study amount collected in the fund in the last fiscal year. The post of director-general, however, is lying vacant since two weeks ago.



“The delay in appointment of director general has not just affected the committee, but also the entire SSFMC,” said Dhakal.



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