NSSF Pays Out Over 95.3 Billion To Members In 24 Days Despite Ongoing Corruption Allegations
The National Social Security Fund (NSSF) has announced that it has paid out Shs95.3 billion to members in the past 24 days despite the ongoing corruption allegations.
This has been confirmed by the acting NSSF Managing Director, Patrick Ayota noting that despite the ongoing allegations of corruption scandals at the fund, they have performed well in the past six months and the first part of the New Year 2023.
“In the past 24 days of the month of January, the fund paid out shs95.3 billion to over 3000 members compared to shs49.9 billion to 1337 members in the same period in 2022,” Ayota said while addressing journalists on Wednesday morning.
According to Ayota, as of December 31, 2022, the fund was worth shs17.88 trillion with fixed income contributing to 78%, equities at 15% and real estate at 7% whereas contributions increased by 22% from shs643billion in December 2021 to shs786 billion.
“Amidst all this noise, between January 1 and 24, we have collected shs121 billion which is 24% more than we did during the same period the previous year,” he added.
The acting NSSF Managing Director explained that by December 2022, realized income had increased by 17% to shs1.054 trillion in December 20222 from shs900bn in the previous financial year
He further added that the benefits paid to qualified members increased by 96% to 712bn in December 2022 from 364 billion in the previous year.
“Even if all this is going on, members are receiving their benefits. From an investment safety perspective, the investments are as safe as they were a year or five years ago.”
Background Of The NSSF Saga
For a couple of weeks now, Minister Betty Amongi Akena has been in battles with NSSF Managing director Richard Byarugaba accusing him of mismanaging the workers’ funds.
These battles started after Byarugaba’s contract expired at the end of November 2022 but the NSSF Board had endorsed Byarugaba’s re-appointment for another five-year term.
On the basis of the endorsement and a presidential directive for the same, Prime Minister Robinah Nabbanja asked line Minister, Betty Amongi to proceed with the appointment however, the minister protested the move and instead called for an investigation into Byarugaba’s conduct while at the fund, accusing him of abuse of office and mismanagement of the entity’s investments, among other issues.
In a letter to Byarugaba, Among accuses him of involving himself in a couple of corruption and bribery scandals among them including, an alleged UGX 3 billion that was paid by CATIC construction as a kickback to build the Mbuya CIDATEL apartments.
”This money was paid to both Richard and the head of procurement called Mugabi Gerald. The head of procurement used his share to build a hotel in Kagadi called (Hotel Seyaya Courts),” claims Among adding,” It’s alleged that during the purchase of MTN and quality Chemicals shares by NSSF, there was a kickback that was paid to Richard and the investment team. This was handled through a lawyer whose name shall be availed in confidence to H.E. only. (The whistleblower is available).”
Among also alleges that in 2012, the office of the Inspector General of Government (IGG) made investigations and instructed that Richard Byarugaba should refund some money to the Fund after it was discovered that he caused financial loss to the Fund by selling a plot that was owned by NSSF at Bakuli at a value less than the value the Fund paid to buy it.
”It is alleged that during the sale of a Plot in Mbarara that belonged to the Fund, there was an exchange of money after the plot was sold at less than the market value and the difference was given to Richard and the Head of Procurement,” Among further accuses Byarugaba.
”Richard used a company called Symbion headed by a Kenyan called (Pius) to redesign his house in Mbuya in exchange for business. The company is lined up for supervision for a contract for the proposed development of the Yusuf Lule Road Plot. That is why he wanted to defy H.E. the President’s directive to give the contract to SMS contractors.” she added in her letter.
Meanwhile, a couple of reports on the other hand pin Among of conniving with Sam Lyomoki, a former Member of Parliament representing workers, in trying to ‘smuggle’ out over Ugx1bn from NSSF, a deal that Byarugaba blocked. It’s said that this annoyed Lyomoki and Among hence launching a ‘deadly’ fight against him.
