The Minister of Gender, Labour and Social Development, Ms Betty Amongi, has declined to renew the contract of Mr Richard Byarugaba as the Managing Director of National Social Security Fund (NSSF), the Kampala Report has learnt.
In a letter dated June 30 to the NSSF Board of Directors, which this publication has seen, Amongi said basing on the recommendations of the Inspector General of Government and Parliament, Byarugaba’s reputation has been damaged and hence cannot be reappointed to the position.
However, the IGG report had concluded that while Byarugaba had been culpable for some of the management errors, he had been instrumental in the growth of the Fund and this should not in anyway impede his reappointment.
But Minister Amongi in her letter to NSSF Managing Director Peter Kimbowa said the reports of the IGG and Parliament are not sufficient enough to determine Byarugaba’s reappointment.
“… and now that the period allowable for someone to act in a position for six months has elapsed, this calls on us to appoint a new MD,” Amongi said.
“Against that background I would like to notify you that your recommendation to reappoint Richard Byarugaba as NSSF Managing Director has been declined,” her nine-page letter adds.
when contacted on the matter, Byarugaba said he had not seen the minister’s letter and neither received the communication from the Board, hence preferred not to comment.
When Mr Byarugaba’s contract expired on December 1, 2022, his deputy, Mr Patrick Ayota, was named the acting managing director and substantive deputy for the next five years.
At the time, the two were both past the mandatory NSSF retirement age of 60. They, however, all showed a willingness to continue overseeing the Shs17 trillion workers’ Fund.
The Gender, Labour and Social Development ministry overseen by Ms Betty Amongi declined to renew Mr Byarugaba’s contract following allegations of mismanagement of the workers’ fund, claims she directed the IGG to look into.
According to a draft report by the IGG, which this newspaper has seen, all the 15 allegations that covered mismanagement, abuse of office and corruption against Mr Richard Byarugaba while he was the Managing Director of NSSF were false.
However, IGG ordered Byarugaba to refund Shs 2.6 billion to NSSF for making irregular payments to staff members who exited through the voluntary early retirement program. NSSF is said to have lost over Shs 4.4 billion under that scheme.
“Mr Richard Byarugaba and Mr Stevens Mwanje should refund…in equal installments for the loss occasioned to the fund when they authorized irregular payments to staff who exited under the voluntary early retirement program within a period of six months,” the report reads in part.
The said schemes came into place following the recent amendment of the NSSF Act. According to the report, there was a change in the staff structure resulting in a reduction in staff. At the NSSF executive committee meeting on April 20, 2022, it was acknowledged that the reorganization led to voluntary departures, and various compensation packages were prepared for the departing staff.
Meanwhile, Byarugaba was cleared of various other allegations, including abuse of office and corruption. There had been claims that Byarugaba had inflated a budget of Shs 4 billion for the purchase of land at Nakigalala. However, the investigations concluded that this allegation was unfounded and not true.
“The estimated cost of Nakigalala land in the FY 2022/23 budget remained Shs 250 billion as it was in the budget of FY 2019/20 to 2021/22 and not Shs 400 billion as alleged,” the report added before it recommended to NSSF to suspend any ongoing procedures related to the acquisition of land at Nakigalala until the ownership disputes concerning the land are fully resolved.
