Why job security for NSSF bosses is a mirage

 

NSSF House in Nairobi. FILE 

By ANDREW TEYIE

In Summary

• “Some learn to run with the hares and at the same time hunt with the hounds because you do not know who will sack you tomorrow. As an MT, you report to everybody and you have to repulse interests on a daily basis,” he said.
• Since 1988, the fund has had nine MTs who have left in a controversial manner. Only last week, Labour Secretary Kazungu Kambi fired Mr Odongo and called in the Efficiency Monitoring Unit to probe how construction tenders worth Sh10 billion were awarded to companies between March and May this year. The projects include Nyayo Estate, Embakasi Phase Six and the Hazina project, among others.

From the days of Mr Jos Konzolo to newly sacked Tom Odongo, the job of managing the provident fund has been one of the most insecure assignments for those who dare to dream.

Powerful and shadowy individuals in government have always influenced the willy-nilly hiring and sacking of National Social and Security Fund (NSSF) managing trustees in a bid to control the Sh110 billion fund.

From buying of quarries to garbage dump sites, NSSF has been used by politicians in previous regimes as a slush fund and managing trustees who don’t play ball are just sacked or hauled before court on trumped up charges.

For those who agree to do their masters’ bidding, it does not take long before they are discarded for more pliant individuals. Whichever route these managing trustee take never ends well in this high stakes game where politicians always have the final word.

A former managing trustee Naftali Mogere summed up the dilemma faced by his colleagues, past and present.

“Some learn to run with the hares and at the same time hunt with the hounds because you do not know who will sack you tomorrow. As an MT, you report to everybody and you have to repulse interests on a daily basis,” he said.

Mogere, who served as the longest MT between 2002-2005 admitted that the turnover at NSSF was inordinately high. He blamed the NSSF board and government for interfering with running of the fund.

“A managing trustee has no space. While other boards allow you as the CEO to work, the NSSF Board of Trustees works like management. Some have offices in the building and use NSSF cars and drivers. If MTs question that, they are sacked.”

Apart from interference from the board, the MT has to contend with many other supervisors who operate under different legal framework.

“Managing trustees are arm-twisted by everyone. They are supervised by the ministry of Labour, Retirement Benefits Authority, the Treasury and many other players. Every supervisor has his requirements and legal framework within which he operates making it difficult to work,” said Mogere.

A vocal board member who did not want to be named said the revolving door at the MT’s office was as a result of interests.

Vested interests

“When it comes to government issues, they may know things that we might not know. Every government has its own interests. This happens every time there is a change of guard or when one feels there is something the present person cannot offer.”

The fund was set up in 1965 as a mandatory workers pension scheme. Then, NSSF was a department under the ministry of Labour. In 1987, Parliament amended the NSSF Act to make it a state corporation and the following year it started operating under a board of trustees with representatives from the government, workers and employers.

Since 1988, the fund has had nine MTs who have left in a controversial manner. Only last week, Labour Secretary Kazungu Kambi fired Mr Odongo and called in the Efficiency Monitoring Unit to probe how construction tenders worth Sh10 billion were awarded to companies between March and May this year. The projects include Nyayo Estate, Embakasi Phase Six and the Hazina project, among others.

“We want to audit all the projects whose tenders were awarded during this period,” said Mr. Kambi who spoke through an aide.

Mr Odongo’s tenure of less than a year was at least longer than that of Mr Fred Rabongo who served for less than a week before the board blocked his appointment. Mr Rabongo had taken over from Mrs Rachel Lumbasyo in 2006 who was appointed after the exit of Mr Mogere.

Mr Odongo had taken over from Mr Alex Kazongo who served for slightly over two years before being fired. Before his confirmation on February 7, this year, Odongo had acted for close to six months.

According to an exit clause in his contract, his employment could be terminated by either party by giving three months prior notice or payment of an equivalent of three months pensionable pay in lieu of such notice.

Saturday, Central Organisation of Trade Unions Secretary General, Mr Francis Atwoli refused to be dragged into the controversy surrounding Mr Odongo’s sacking.

“We have mandated the chairman of the board of trustees to give directions and issue public statements on the matter because we knew it would end up in court. These court matters are delicate. Not just any person can comment on them lest we are cited for contempt,” said Mr Atwoli