Pioneer fails to pay NSSF funds

A section of the Pension Towers currently under construction. Some stakeholders say the Fund is investing in unviable ventures. Photo BY RACHEL MABALA. 

By ABDU KIYAGA

In Summary

The bus company is said to have failed to pay the workers’ contributions despite indicating it on their payslips.

Kampala

Barely a month after its workers went on strike over unpaid salaries, more disturbing findings have revealed that Pioneer Easy Bus Limited has never remitted money for more than 600 workers to the National Social Security Fund (NSSF).

Investigations by this newspaper have found that despite the money being reflected on the workers’ payslips, thorough audits from the Fund indicate that the bus company, which appears to be facing financial difficulties, has never remitted any money.

“According to our records, Pioneer Easy Bus Ltd has not remitted NSSF contributions for its employees since it started operations in December 2011. We recently carried out an audit and established that the company owes us more than Shs266 million, including an accruing penalty of 10 per cent,” the NSSF deputy executive director, Ms Geraldine Ssali, said.

Facing court

She added that the company has been adamant to adhere to a deed agreement proposed by the company to settle the arrears after the matter was discovered last month. “We have therefore initiated litigation proceedings against the company as provided for under the NSSF Act,” Ms Ssali said.

In an interview with the Daily Monitor last week, the directors of the company; Mr Albert Muganga, and Mr John Masanda, in separate interviews, denied claims that they were not contributing to the fund.

“We pay NSSF money and all those that say we don’t should prove it,” Mr Masanda said.
This newspaper, however, received information from a whistleblower at the company that NSSF funds had not been remitted.

According to the NSSF Act, a company with more than five employees is subject to register with the social fund, remitting 15 per cent of the employees’ salary contributions.