Govt stops sh130b pension payment
Sep 23, 2009
THE finance ministry has withheld sh130b pension arrears demanding accountability from the public service ministry for sh210b it received earlier.
By Mary Karugaba
THE Finance ministry has withheld sh130b pension arrears demanding accountability from the public service ministry for sh210b it received earlier.
The ministry permanent secretary, Chris Kassami, told MPs on the public accounts committee yesterday that despite efforts to clear pension arrears, the public service ministry continued to demand billions of shillings more.
He said, as a result, the ministry had asked the Auditor General to carry out a forensic audit of previous funds to ensure that “we are not paying ghosts.â€
“In the 2007/2008 financial year, finance released sh210b to clear all pension arrears. We thought that with this, we would clear everything but it was never the case,†Kassami said. “When the ministry presented again a new figure of sh130b, we became concerned and demanded to know why the arrears continue to accumulate.â€
He said they had already discussed the matter with public service. “We want to ensure transparency and efficiency. Therefore, until the Auditor General comes out with a report, we shall not clear any arrears.â€
Public service permanent secretary Jimmy Rwamafa said part of the money was diverted to clear recurrent monthly pension and gratuity.
Pension commissioner Stephen Kunsa said they were “pushed†because according to the Constitution, pension should be cleared promptly and within time.
“We even received threats of litigation that we were violating the Constitution. We acted in good faith,†Kunsa said.
He told the committee, chaired by Nandala Mafabi (FDC), that about 72,000 people join the pension list every year.
Finance ministry officials, however, rejected the explanation, saying the money was meant for arrears, not for current pensions.
“The money was voted for pension arrears. It was never budgeted for such activities. I was never informed about the diversion,†Kassami said.
Mafabi and Okello Oduman (FDC) observed that many people were dying without having received their pension.
They called upon the ministry to work out a procedure to enable pensioners get their money without difficulty.
The Auditor General said he would look at the payroll and at the current arrears of 130b and compile a report.
THE Finance ministry has withheld sh130b pension arrears demanding accountability from the public service ministry for sh210b it received earlier.
The ministry permanent secretary, Chris Kassami, told MPs on the public accounts committee yesterday that despite efforts to clear pension arrears, the public service ministry continued to demand billions of shillings more.
He said, as a result, the ministry had asked the Auditor General to carry out a forensic audit of previous funds to ensure that “we are not paying ghosts.â€
“In the 2007/2008 financial year, finance released sh210b to clear all pension arrears. We thought that with this, we would clear everything but it was never the case,†Kassami said. “When the ministry presented again a new figure of sh130b, we became concerned and demanded to know why the arrears continue to accumulate.â€
He said they had already discussed the matter with public service. “We want to ensure transparency and efficiency. Therefore, until the Auditor General comes out with a report, we shall not clear any arrears.â€
Public service permanent secretary Jimmy Rwamafa said part of the money was diverted to clear recurrent monthly pension and gratuity.
Pension commissioner Stephen Kunsa said they were “pushed†because according to the Constitution, pension should be cleared promptly and within time.
“We even received threats of litigation that we were violating the Constitution. We acted in good faith,†Kunsa said.
He told the committee, chaired by Nandala Mafabi (FDC), that about 72,000 people join the pension list every year.
Finance ministry officials, however, rejected the explanation, saying the money was meant for arrears, not for current pensions.
“The money was voted for pension arrears. It was never budgeted for such activities. I was never informed about the diversion,†Kassami said.
Mafabi and Okello Oduman (FDC) observed that many people were dying without having received their pension.
They called upon the ministry to work out a procedure to enable pensioners get their money without difficulty.
The Auditor General said he would look at the payroll and at the current arrears of 130b and compile a report.