Workers' unions have asked Parliament to investigate further why many savers’ accounts have remained dormant for a long time.

According to the Union leaders, out of 1.3 million savers, only 630,000 accounts are active and the remaining are dormant. 

Mwine Mpaka Committee chairperson

“This is a very big concern that we need the committee to deeply investigate. We request the Committee to find out what happened to them and why did they stop saving. Could the problem be that their employers are not remitting their money?” Job Matua representing savers asked.

Matua also expressed concern over the low levels of compliance by employers. 

Entebbe Municipality MP Michael Kakembo

He informed the Parliamentary Select Committee investigating the operations and management of the National Social Security Fund that according to the auditor general’s report, over sh200b has not been remitted to NSSF by employers.

“These employers deduct money from the workers, but they don’t remit the money. It’s unfortunate that the management of NSSF has not instituted stringent measures to bring these people to book,” Matua said.

Richard Bigirwa Secretary general NOTU

The Workers’ Union; Central Organization of Free Trade Unions (COFTU) and National Organization of Trade Unions (NOTU) leaders were meeting the Committee chaired by MP Mpaka Mwine.

NOTU Secretary General Patrick Bigirwa said they have raised the issue several times with NSSF, but not much has been done.

“The level of compliance is worrying. Many workers are not remitting their money to NSSF, especially casual labourers. We have discussed this matter with NSSF and have asked them to quickly find a solution,” he said.

The Deputy Speaker of Parliament, Thomas Tayebwa, on January 25 instituted a seven-man select committee to investigate the operations and management of NSSF after alleged mismanagement of the sh17.9 trillion workers’ fund.

Members of the NSSF probe team include workers’ MP Charles Bakkabulindi, Karim Masaba (Independent (industrial division, Mbale city), Michael Kakembo (NUP) Entebbe Municipality, Fortunate Nantongo (DP) Kyotera district, Laura Kanushu (NRM) PWDs, and Amos Kankunda (NRM) Rwampara county.

Amos Kankunda Rwampara MP

According to the terms of reference, the committee will examine the corporate governance structures at the NSSF, examine circumstances surrounding the appointment of the fund’s managing director, and evaluate the status and safety of savers’ money in the fund.

The committee is also required to examine the extent of stakeholder engagement in decision-making in the fund.

“We are going to look at the circumstances surrounding the appointment of the MD, corporate governance at the fund, to establish whether the fund, peoples’ savings are safe. We are also going to look at any other emerging issues as stated by the honourable minister, for example, claims of corruption,” Mpaka explained.

The move by Parliament to inquire into the operations of the NSSF followed reports of corruption and mismanagement of the workers’ fund.

The controversy revolved around the reappointment of the former managing director, Richard Byarugaba, who had attained the mandatory retirement age of 60.

Just like his deputy Patrick Ayota, Byarugaba had been recommended for reappointment for another five years, by both the president and the board, but his reappointment suffered a setback after a series of petitions against him, for alleged mismanagement of the fund.

The matter is currently under investigation by the Inspector General of Government (IGG) and now Parliament. 

“We are aware the IGG has started investigations but also Parliament has begun investigations whatever we do, we will inform the IGG of our steps because we are sure our report will be ready before the IGG’s report is,” Mpaka said.