Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) has ordered the Kampala Capital City Authority-KCCA Accounting Officer to recover the 10 percent contribution that was remitted to National Social Security Fund (NSSF) for KCCA pensionable staff.
The committee has also criticized officials of KCCA for causing a financial loss to the government.
This is carried in the committee’s report to parliament following an inquiry triggered by a petition to Speaker Rebecca Kadaga by a whistle-blower in August 2019.
However the report does not indicate how much was remitted to NSSF and how many staff benefited.
The petitioner pointed out abuse of office and causing financial loss to the government by KCCA through paying 10 percent NSSF contributions for its permanent and pensionable members of staff who are supposed to be administered by the Pension Act.
The whistle-blower asked that NSSF immediately transfers the equivalent of 10 percent so far remitted to the Fund since 2013 to the Consolidated Fund with interest accrued since 2013 and that all the officers of KCCA and NSSF involved in the act intended to defraud the government and cause illicit enrichment should be prosecuted.
According to the whistle-blower, all the KCCA staff that have since retired or resigned from the Authority but were beneficiaries of the illegal remittances should be made to refund the money to the Consolidated Fund failure of which the Accounting Officer who remitted the money should be held responsible.
In the report by the committee chaired by Kawempe South MP Mubarak Munyagwa, MPs have recommended that the KCCA Accounting Officer expedites the process of recovering the funds and remit them to the Consolidated Fund.
The committee further directs that the Ministry of Finance should ensure that gratuity is not paid to retiring officers before full recovery is made.
“The Committee is pleased to report to you that the irregular practice of remitting NSSF contributions to permanent and pensionable staff has been stopped by the new Executive Director of KCCA and efforts to recover the funds are underway,” reads the report.
The committee found the petitioner’s prayer to prosecute KCCA officials involved in the remittances as not tenable. However, it recommends that the former KCCA Executive Director who ignored advice from the Solicitor General and continued to remit funds to NSSF be personally held liable for any financial loss. Parliament is yet to debate the committee report.
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