NSSF: Byarugaba, Amongi speak out on IGG’s report

The former National Social Security Fund (NSSF) boss, Mr Richard Byarugaba, and Gender minister Betty Amongi have welcomed the findings of the probe by the Inspectorate of Government into the affairs of the Fund; albeit with some reservations.

In a 61-page report, ombudsman Beti Kamya absolves Mr Byarugaba of many mismanagement, abuse of office and corruption allegations levelled against him; only convicting him of making irregular payments and insubordination.

The ombudsman also makes no damning findings or recommendations against Ms Amongi.

Ms Amongi, who also welcomed the report, was quick to add that other ongoing parallel investigations into the matter could yet change what now looks like a settled picture. 

Both Ms Amongi and Mr Byarugaba have been at the centre of the scandal that rocked Workers’ House for over six months, with each accusing the other of some form of misdeeds in the management of the Shs17 trillion Fund. 

While addressing journalists in Kampala on Friday, Mr Byarugaba struck an enthusiastic tone following his exoneration. 

“I am particularly pleased with the report … The report clearly does resonate with what I have always said that I am innocent and the accusations levelled against me were baseless,” he said.

The ombudsman’s report departs considerably from the recommendations of Parliament that handed the Fund’s top brass over to be prosecuted and/or fired for alleged gross mismanagement of workers’ money. 

In the report, seen by Monitor, the ombudsman not only applauded Mr Byarugaba for growing the Fund but also absolved him of corruption, abuse of office and mismanagement charges.

His misdeeds, Ms Kamya says, are diminished in the face of his stellar performance while at the helm of the Fund.

Ms Kamya also cleared Mr Byarugaba of inflating the price of the Nakigala land, rejecting initiatives to scale up registration of members, taking bribes, siphoning money out of NSSF through exorbitant expenditure on foreign trips, irregular and sham procurements, among others. 

He, however, was convicted of making irregular payments in billions of shillings that he now has to pay back, or face prosecution.

Appeal
Mr Byarugaba said he will consider appealing the recommendation where he and NSSFs Finance Director Stevens Mwanje are to jointly refund Shs5 billion.

The ombudsman’s June 29 report condemns Mr Byarugaba for effecting irregular payments to two board members who had resigned. He is also red-flagged for payments made to staff who exited under the voluntary early retirements.

“These were managerial and administrative decisions that were made lawfully and legally within the NSSF. These were not personal decisions of the MD [managing director] or the director of finance and were not aimed at enriching myself,” Mr Byaugaba said. 

He added: “These strategic decisions were made by the board and the organisation as a whole. I did not do it as an individual. The minister had approved. The board had approved. How can you say the one who signed is the problem?”

Mr Byarugaba was also convicted of insubordination for refusal to implement the minister’s directive to alter the budget and provide Shs6b, which predisposes him to disciplinary policies.  

Despite this, Mr Byarugaba—who was at the helm of the Fund for 12 years—said he would be willing to resume his position.

“Six months ago, I put myself forward for my contract to be renewed, the Board recommended me to the minister on the basis that I had done very well and I was eligible for reappointment based on the NSSF Act. That situation has not changed, but that decision is for the minister, the Board and the President,” he said.

Not over yet
For Ms Amongi, who declined to renew Mr Byarugaba’s contract, NSSF’s immediate past MD needs to hold his horses as other ongoing investigations will play a critical part in determining his fate.

“…besides the IGG, the task to investigate expert audits on engineering for real estate of Pension  Towers and Lubowa (Housing Estate) is with the Auditor General[’s office which] has not yet concluded their investigations. [It is] the one that deals with the most difficult part, which is inflating the cost of real estate,” Ms Amongi said.

“There is a Criminal Investigation Department investigation going on... I welcome this portion of the work done, which is about 40 percent of the work [that] is supposed to be done. Sixty percent of the work is still with the Auditor General,” she added. 

Mr Byarugaba has, however, expressed concerns that the prolonged saga will affect the performance of the Fund, especially the interest paid to its members. 

“Every single investment does not react well to noise and that is what the last six seven months have been, noise. Noise created artificially … investments do not like noise and you will see that noise did not help the Fund. You will see when the announcement is made,” he said.