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What is the extent of the independence of the guarantee funds investment fund from the institution?

Amman Today

publish date 2023-07-02 11:51:36

compass – monitor

Insurance and social protection expert Musa Al-Subaihi said that there is an impression among many that the Social Security Investment Fund is completely independent from the Social Security Corporation, and he confirmed that this is not true.

Al-Subaihi added, through his account on Facebook, that the investment fund has administrative and technical independence that is specific and not absolute, and is subject to the supreme authority of the Social Security Corporation represented by the Board of Directors of the Corporation, especially since this board is the one that is assigned to the Council of Ministers with the names of the five persons from outside the Corporation to be members of the Investment Council, according to Article ( 14/A/4) of the Insurance Law.

And the Social Security Investment Fund announced that its assets increased by about 1.4 billion dinars, to reach about 13.8 billion dinars at the end of 2022, compared to 12.3 billion dinars at the end of 2021, with a growth rate of about 12%, according to the preliminary financial statements for the year 2022.

Al-Subaihi called on the Board of Directors of the Insurance Corporation to closely follow up the activities, decisions and results of the work and plans of the Investment Fund and the Investment Board, which falls within its supreme responsibility for all the affairs of the Corporation in its two main wings, the insurance and the investment.

Al-Subaihi inferred from the provisions of the Social Security Law itself and the investment fund system issued according to it:
1) Paragraph “C” of Article “8” of the law states: (For the purposes of investing the Foundation’s funds, a fund called “Social Security Funds Investment Fund” shall be established in it that enjoys administrative independence, and the manner of managing it, its work mechanisms, and the funds allocated to it, managing and investing it according to a special regulation issued for this purpose. the aim).
2) Article “14” of the law stipulates: (A council called “Social Security Funds Investment Council…” shall be formed in the institution, “meaning the insurance institution.”).
3) Bylaw No. 97 of 2014 of the Guarantee Money Investment Fund stipulates the following:

  • Paragraph “a” of Article “3”: (The investment fund adheres to the general investment policy of the institution).
  • Paragraph “b” of Article “3”: (The Board “i.e. the Board of Directors of the Corporation” shall issue the necessary instructions to define investment objectives, criteria, mechanisms and determinants of investments).
    It is clear from the foregoing that the Social Security Fund Investment Fund is part of the main components of the Social Security Corporation, although it enjoys limited administrative independence, and does not have any financial independence, and even technical independence is also limited and controlled by adherence to the investment policy approved by the Board of Directors of the Corporation.

For his part, the head of the Social Security Investment Fund, Dr. Ezz El-Din Kanakrieh, said that the fund invests the insurance surplus from the insurance contributions, within a system of legislation, laws and investment policies.

He explained that the fund is a large investor in the Jordanian economy, stressing that it is well and reassuring, and is heading for recovery as a result of the various returns.

He pointed out that the policy includes a targeted strategic distribution of investment, its type and the relative weight of each type, indicating that it includes the market study for any project, as well as the technical financial study.

According to Kanakriya, the study includes the internal rate of return and risks, pointing out that it is being studied in order to present investment opportunities to the Investment Board to take a decision regarding them.

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Jordan News

Source : اخبار الاردن

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