Scramble for control as detectives probe Uganda's NSSF

 

The National Social Security Fund headquarters in Kampala. Parliament has ordered police to investigate the pension fund over allegations of corruption. Photo/ File 

By DANIEL KALINAKI The EastAfrican

In Summary

• The probe was part of an investigation ordered by parliament into the Ush3.5 trillion ($1.34 billion) pension fund, which holds Uganda’s largest stash of cash after the Bank of Uganda.
• Uganda’s public ombudsman’s office is already investigating NSSF following a series of allegations by a whistleblower of abuse of office.
• The parallel probe by the august House, though not unprecedented, points to a struggle for control of Uganda’s biggest public financial institution, an investigation by The EastAfrican can now reveal.

On August 1, detectives attached to parliament quietly visited the National Social Security Fund (NSSF) head office in Kampala, interviewed key officials and left with batches of documents after a couple of hours.

The visit was part of an investigation ordered by parliament into the Ush3.5 trillion ($1.34 billion) pension fund, which holds Uganda’s largest stash of cash after the Bank of Uganda.

The Inspector-General of Government, Uganda’s public ombudsman’s office, is already investigating NSSF following a series of allegations by a whistleblower of abuse of office.

The parallel probe by the august House, though not unprecedented, points to a struggle for control of Uganda’s biggest public financial institution, an investigation by The EastAfrican can now reveal.

Reliable sources told this newspaper a Member of Parliament had a couple of weeks earlier met a senior NSSF official and attempted a shakedown, with the threat to “make life difficult” for the executives when they appear before the House

.

The MP declined to comment and the allegation could not be independently verified, but previous witnesses have spoken of extortion attempts when they appear before parliament.

Jobs to be re-advertised

Finance Minister Maria Kiwanuka recently announced that top jobs at the Fund — including that of managing director Richard Byarugaba and company secretary David Nambale — would be re-advertised this year following the allegations.

She told The EastAfrican the decision was a precaution in light of the ongoing investigation.

Mr Byarugaba’s contract is due to expire at the end of this month while Mr Nambale’s has already lapsed, but both are expected to receive extensions until the end of the year to allow for continuity, Finance Ministry sources said.

The whistleblower’s dossier details serious and diverse allegations of conflict of interest, in-fighting and other lapses in corporate governance.

It has created a sense of déjà vu around an institution whose past three top executives were fired and are either on the run, in jail or unemployable.

Two of the allegations revolve around recent transactions by NSSF: The purchase of a 8.1 per cent stake in power distributor Umeme during its initial public offering (IPO) in November, which was allegedly done without the necessary approvals; and the sale of a prime plot of land in Kampala allegedly at sub-market prices.

The latter allegation has similarities to Temangalo — NSSF’s controversial purchase of land from Prime Minister Amama Mbabazi and businessman Amos Nzeyi that cost then finance minister Ezra Suruma and NSSF boss David Chandi Jamwa and his deputy Prof Mondo Kagonyera their jobs.

The EastAfrican has seen documents that show the NSSF bought the land without due diligence and at an inflated price during Mr Jamwa’s tenure.