Auditors Flag D14.34 Million Pensioners’ Loan Balance at SSHFC, Recommend Automated Pension Management System

By Fatou Sillah

The National Assembly’s Public Enterprises Committee (PEC) has raised concerns over a D14.34 million outstanding pensioners’ loan balance at the Social Security and Housing Finance Corporation (SSHFC), while also highlighting weaknesses in the corporation’s pension management system.

The findings are contained in the committee’s report on its scrutiny of the audited financial statements, management letters, and activity reports of state-owned enterprises for the financial year ended 31 December 2022.

According to the report, auditors found that loans and advances extended to pensioners under SSHFC’s loan scheme totaled D14.34 million as of the end of 2022.

“As of 31st December 2022, the auditors noted that the closing balance due from pensioners amounted to GMD 14.340 million. They requested for the loan policy on the loans disbursed to the pensioners, but this was not provided for their review; they were only provided with the board approval,” the report states.

The auditors also observed that SSHFC relies on a manual system to monitor loans issued to pensioners, raising concerns about the efficiency and reliability of its record-keeping processes.

In response, the committee recommended that the SSHFC Board and Management implement an automated pension register integrated with the pension payroll extraction system to reduce manual intervention and minimize errors during data processing.

The committee further urged the corporation to establish a regular reconciliation process between the automated pension register and the payroll extraction system to ensure the accuracy and consistency of pension records.

Additionally, lawmakers called on SSHFC to develop and adopt a comprehensive loan policy to govern the administration of loans granted to pensioners.

The report also noted broader shortcomings in the corporation’s pension management framework. Auditors found that pension benefits are paid based on beneficiaries’ preferred payment schedules—monthly, quarterly, semi-annually, or annually.

However, the auditors observed that the pension register used to monitor beneficiaries is maintained in Microsoft Excel and is not integrated with the system from which the pension payroll is generated.

The committee said modernizing the pension management system would strengthen internal controls, improve operational efficiency, and enhance the accuracy of pension payments.