The former managing director of National Social Security Fund (NSSF) Richard Byarugaba has appealed to parliament to help him return to office as investigations into the entity go on.
Byarugaba was on Friday appearing before the select committee to respond to allegations of corruption and mismanagement of the fund levelled against him by the minister of Gender, Labour and Social Development, Betty Amongi. The allegations were highlighted in Amongi’s letter to the NSSF board chairman, Peter Kimbowa questioning the reappointment of Byarugaba when his contract expired at the end of November 2022.
He appealed to the committee to avert the damage to the reputation of the fund, saying that it would be prudent for him to be re-appointed and all investigations go on while in office. He also appealed that parliament reconsiders the duo supervision of the fund by the ministries of Finance and Gender.
“Have me reappointed on the basis of the board’s recommendation. I would like the investigations to be done but there is no reason for me not to be in office while these investigations are being done because it has happened before as I said. IGG has investigated, the office of the auditor general has done a value for money for Lubowa [housing estate]. All these things can happen while I’m in office. So that is my request and I request for action. The second action is please consider, I have given you the evidence, you can get more evidence from everybody else but I think parliament should consider the removal of dual supervision of the fund as this has proved to stifle decision-making and all the things I have said and lack of accountability,” he said.
The NSSF board had endorsed Byarugaba’s reappointment together with his then deputy, Patrick Ayota for another five-year term even after they reached the retirement age of 60. As a result, prime minister Robinah Nabbanja asked Amongi to proceed with the appointment “as recommended by the board to avoid any managerial gaps, which can put the workers’ funds at risk.”
Amongi however protested the move and instead called for an investigation into the conduct of the Byarugaba’s reign at the fund. She accused him of among others; abuse of office and mismanagement of investments. She directed that investigations be conducted within two months by the inspectorate of government and the auditor general in line with a resolution by the board of directors.
“It is clear that the board of directors of NSSF have exercised their mandate under the law and have recommended my re-appointment and that of the deputy managing director; however, the minister has abdicated her duties and has acted illegally and with a lot of bias in rejecting my appointment and has opted to appoint the deputy managing director unconditionally,” Byarugaba told the select committee.
He said that the reasons enumerated by the minister while deferring his appointment are based on allegations which are very symptomatic of a breakdown in the governance structure of the fund.
“Surely…a fund that has been performing so well, how can those allegations be sustained even to a common-thinking man on the street? In any case, these allegations cannot even be attributed to me as an individual and would require a thorough review of the legislative governance structure of the fund,” said Byarugaba.
According to Byarugaba, all these allegations have come up just in less than one year after the amendment of the NSSF Act that allowed the ministry of Gender to be one of the supervising entities.
“In less than one year, once we have transferred back to the ministry of Gender; corruption, influence peddling, delayed decision making, scandals are back to haunt the savers. We had left the press but we’re back in it. The press, by the way, are happy with this, they love it. It sells their paper, every single day they have a headline on NSSF, everybody picks their paper. Unfortunately, while they make the money, the fund’s reputation is negatively impacted upon at a time when the law has just been changed for us to increase our mandate. So what do you expect all these people who would have voluntarily come to us? They are saying look at these den of thieves and we’re calling thieves ourselves,” added Byarugaba.
Byarugaba recounted the events following his failed re-appointment saying that the chairman of the NSSF board on July 1, 2022 wrote to the minister to recommend his appointment and the deputy managing director for a three-year contract, before the contracts of the two were due to expire.
“However, the minister in a letter dated the 20th of July wrote appointing only the deputy managing director for one year and noting that she had written to the president consulting that both of us had surpassed our retirement age,” Byarugaba narrated.
He added that minister Amongi in another letter dated July 22, 2022, wrote to him directing that he retires on grounds of hitting the 60 retirement age and that he hands over to his then NSSF deputy managing director, Patrick Ayota, aged 62 years.
“In the events that followed in the letter dated July 22 out of nowhere, Mr chairman, it was a Friday, 4 pm – I’m looking forward to a nice weekend [to] my utter shock and horror, I get a letter from the minister forcing me to retire on the grounds that I had reached retirement age as per the public standing orders. The directive was handed and that I should hand over my office to my deputy who in fact was older than me but it’s ok at 62 and whose contract had just been extended a few days ago even without consulting the board or the board’s recommendation. In that letter to me, the minister alludes to consultation [with] the president on how to proceed to appoint me on contract after retirement and in case she had not got a response from the president,” said Byarugaba.
In her letter, Amongi directed Byarugaba that effective July 26, 2022, he stops exercising the mandate and functions of the office of managing director and that the deputy managing director, who had retired and been appointed on contract would act as managing director.
“I have already written to His Excellency the President notifying him of the position of the law and seeking his guidance on how to handle your appointment on contract within the law. I will upon receiving evidence of your retirement, take appropriate action,” Amongi wrote.
Byarugaba told the select committee that he accordingly wrote to the minister indicating his retirement but Amongi never responded. However, the attorney general who had been copied in the initial letter responded saying that the standing orders were not applicable.
“Fortunately, she had copied in the attorney general and the attorney general responded. The assistant solicitor general even later dated that and wrote to clarify that the standing orders were not applicable since there was an instrument of appointment which did not adopt the standing order ensuring that the managing director sees out his contract. So as I always say, I was saved by the bell on that day because if you look at the third page [of] that letter, it says in the date of the above this is to advise that the five-year contract of the current managing director is valid. I was still validly in office until 1st December in accordance with the instrument of appointment unless this appointment is lawfully terminated earlier,” said Byarugaba.
President Museveni later wrote to Amongi advising that she ‘quietly’ consults on the manner.
“I have seen your letter appointing Patrick Ayota as deputy managing director of NSSF because we need a new group because the current one have both attained the age of 60. It is better one consults quietly about these appointments before deciding. In the case of NSSF, the present group seems to have done a good job, growing the fund from Shs 1.6 trillion in 2010 to Shs 17.2 trillion currently. Good performance is not very common in parastatals, where it occurs the actors should be appreciated,” the president wrote in part.
Museveni suggested in the letter that the matter be discussed with the vice president, prime minister, minister of Finance and attorney general on August 20. The president then said that they still had time since Byarugaba’s term expiry was on November 30.
The chairman of the NSSF board later recommended the re-appointment of both Byarugaba and Ayota but Amongi deferred Byarugaba’s appointment. Byarugaba says that these events surrounding his re-appointment point to unfair treatment by minister Amongi.
The Observer
