August 25: The much-disputed social security fund has been operating on loans. The Social Security Fund that was widely publicized as the ‘beginning of a new era’ by the government led by the former Prime Minister KP Sharma Oli, have to take loans due to the lack of its own source of income.

As per the article 26 of Social Security Act 2074, the fund has been established and staff have been managed. However, the fund lacks source to cover the salaries and facilities of the employees and expenses related to the operation of the office.

Officials claim that the SSF has to meet the expenses by taking loan from the government of Nepal every year due to the lack of its own source of income.

The fund has taken a loan of Rs 50 million in 2076/77 at an interest rate of three percent that needs to be paid within five years. It has been found that Rs 23 million has been spent on administrative operation and management. Likewise, the fund seems to be operating on debt even in 2077/78.

This year, the fund has taken a loan of Rs 150 million from the government of Nepal. The amount has been spent on office operation, rent, employees’ salary, and facilities. Similarly, in the current fiscal year 2078/79, the fund is preparing to take a loan of Rs 220 million in installments.

“It is not clear in the act on how to mobilise financial resources to run the fund, so we have to take loans,” said Bibek Panthi, a spokesperson for the SSF.

According to him, the government should give two to three percent of the profits to the fund to cover the expenses of the fund. For this, the Act should be amended. Although the fund has continuously raised its voice in this regard, its pleas have fallen into deaf ears.

The recent 58 ^th report of the Office of Auditor General seems to have raised questions about the inability to manage resources for the expenditure of the SSF. The report calls for ensuring resources.

As per Article 20 of the contribution-based Social Security Act 2074, the employers must list the employees within six months of the commencement of the Act. Accordingly, 15,075 employers have registered 275,000 contributors till July 31, according to the fund.

Panthi said that the listing is increasing. Many workers in the formal and informal sector are unable to join the social security scheme. The government’s efforts have not been fruitful. Even though the Social Security Fund has been urging the private sector to get listed, the employees of banks and financial institutions, in particular, have not agreed to register as they believe that the facilities they have been given will be taken away. They have even filed a writ petition in the Supreme Court disagreeing with the policy taken by the fund. This issue is sub judice in the court.