Was asked to talk about NSSF and the UMEME deal Social Security money are funds saved by workers so that they have something to help them when they retire. Information available is that UMEME has been interested in the fund since 2004! This company is meant to make profits. And also makes losses. NSSF money should never be invested in risky ventures like the buying of shares. Reason is when the company makes losses, workers loose their saving hence leave a frustrated life in future. The game of shares is very funny. The selling of shares is meant to mobilize funds or capital. When companies are floating shares, they manipulate their financial statement to show that they are making profits. They then increase share prices and unsuspecting people and companies buy these shares. When they get the money, next thing they do, they manipulate the accounts to show that the company is not making profits. This move pushes the price per share down. They buy back their shares at a low price leading to losses on the side of those who bought the shares. It is possible for the CEO of a company like NSSF to connive with UMEME management and UMEME sell to NSSF shares at a price higher that the market price. This is very common on the New York Wall Street. Its such a behavior that made CEO become so rich at the expense of the share holders in the end leading to the Roaring Nineties as Proff. Joseph Stiglitz calls it or as it came to be called the Credit Crunch. Why would the Minister be given document in one day and they want her to sign after 12 hours? This has become a Mafia State that one should be very careful while making any dealing. Workers saving should only be invested in the buying of Treasury Bill and Bonds. These bring little interests but are the safest kind of investment with no losses. Social Security should never be privatized. For private individuals are profit motivated which make them engage in risky ventures which would put the future of the workers in jeopardy.
Posted on: Wed, 03 Sep 2014 08:39:04 +0000