By Our Reporters.
Uganda Parliament on March 9, 2023 adopted a report of a Select Committee into mismanagement of the National Social Security Fund (NSSF), recommending immediate resignation of Gender, Labour and Social Development (GLSD) Minister Hon. Betty Amongi. The Minister’s troubles emanate from her involvement in the controversial Ushs 6b in the NSSF budget whose expenditure both the Select Committee and Parliament found to be irregular, dubious and questionable.
According to a June 16, 2022 communication on the matter, Ushs 6b was to be used facilitating implementation of provisions of the NSSF Amendment Act, 2021 including mobilisation, registration of workers, expanding collections of contributions and enforcing compliance. The partners were among other stakeholders supposed to be labour unions affiliated to Central Organisation of Free Trade Unions (COFTU) and National Organisation of Trade Unions (NOTU) plus media houses and journalists in the country.
The Minister was also accused of approving questionable Ushs1.8b allocated for Corporate Social Responsibility,(CSR) where she was reportedly set to receive Ushs 250m. Board Chairman Ushs 250m, board members Ushs 500m and Labour centres NOTU and COFTU Ushs 800. She said the allocation was to be invested in a savers’ SACCO. Hon Amongi was also faulted for misleading NSSF to invest 40b in “not for profit” Grain Council Uganda without carrying out feasibility study.
Hon. Amongi said she acted within the law, citing Section 29(3) of the NSSF Act, which gives the Minister powers to approve or disapprove or vary the budget or approve it as need may arise subject to amendment as he or she may deem fit.
“There was no budget implementing the new law. We discussed with the (NSSF) Board and agreed to reduce the Ushs 15b wasteful expenditure on staff, and instead proposed reallocation of Ushs 6b in priority areas,” She said.
The Minister said she was guiding the budget to an area of priority, and that the activity to implement the NSSF Act, 2022 does not fall under
her Ministry. She said:” None of these activities has any personal benefit to me. It is false for the committee to draw a conclusion that I made a directive.” Hon Amongi accused former NSSF Managing Director Mr Richard Byarugaba of originating a smear campaign against her using the controversial Shs6b. “I have been accused and condemned with no evidence to substantiate and prove allegations before the law. I ‘m being victimised yet i am a whistleblower. The committee cannot recommend a criminal offence against me for a crime unless it proves beyond reasonable doubt.” She said. The Minister wondered why the committee did not implicate the former supervisors at Finance Ministry who were in charge when massive mismanagement occurred at NSSF. “I started supervising NSSF in February 2022.
All the issues happened under the Ministry of Finance. Why didn’t the committee make harsh recommendations for Ministry of Finance?”. She asked Hon Amongi stated that its her Ministry that raised a red flag culminating in investigations by the Inspector General of Government (IGG), Auditor General and the Parliamentary Select Commitee on NSSF.
The Minister, visibly enraged and dissappointed, put up a spirited fight which was occassionally interrupted by the Speaker Anita Among, with reminders to explicitly explain Ushs 6b approval and intended expenditure. In the end she bowed down as she failed to convince legislators to spare her. Former NSSF Managing Director Mr Richard Byarugaba said he welcomes investigations by the IGG, which he believs would clear him of wrong doing He said the real impediment to NSSF smooth operations is Minister Amongi whom the committee rightly recommended that she resign immediately in public interest . Parliament also resolved that the NSSF Board of Directors be dissolved and former and current executives face prosecution. Legislators adopted proposals for all monies irregularly paid out to staff, board members and workers’ labour unions be refunded between one week and 60 days.
The House chaired by Speaker Hon. Anita Among, endorsed Hon. Mwine Mpaka – led committee’s recommendations to conduct forensic audits by the Auditor General on all NSSF projects and procurements. Parliament adopted committee recommendation that Central Organisation of Free Trade Unions (COFTU) and National Organisation of Trade Unions (NOTU) should refund Ushs 806 million that they illegally received from NSSF. Legislators agreed with the committee recommendation to stop further disbursements of NSSF money to labour unions. The House was in agreement that it was erroneous for NSSF management to extend unsecured loan of Ushs 11.05b to Uganda Clays without conducting due diligence on its credit worthiness which accrued interest of Ushs 13.26b.
Parliament took to task NSSF management for illegally paying NSSF board members 10 percent contributions when they have never been NSSF staff. The beneficiaries were instructed to refund the money between seven working days and 60 days or face prosecution.
Mr Byarugaba’s contract ended December 1, 2022, and Minister Amongi declined to renew it after NSSF Board recommendation for reappointment on a fresh five-year term.
NSSF manages assets worth over Ushs 17.4 trillion in fixed income, equities and real estate within East African region■
