Govt signs deal to pay Makerere

Sep 23, 2011

THE Government yesterday signed an agreement with Makerere University undertaking to clear sh16.7b pension arrears which the National Insurance Corporation (NIC) owes the university staff.

By Conan Businge

THE Government yesterday signed an agreement with Makerere University undertaking to clear sh16.7b pension arrears which the National Insurance Corporation (NIC) owes the university staff.

The staff had yesterday set the signing of the agreement as a condition which the Government had to fulfill before they accept to resume work.

Under the Memorandum of Understanding (MOU) signed with Makerere University, the Government agreed to pay the sh16.7b pension funds in three phases.

The insurance company, however, still insists it has already paid the money it owed the university staff.
“The Government hereby agrees to pay sh16.7b to the university as determined by the Auditor General,” read the agreement.

The sh5b shall be paid on or before November 30, this year. Sh6.7b will be payable on or before January 31, 2012, while a third chunk of sh5b will be due on April 30, 2012.

The agreement was signed by the acting vice-chancellor, Prof. Venansius Baryamureeba, the university secretary, David Muhweezi and the deputy secretary to the treasury, Keith Muhakanizi, who signed on behalf of the Government.

The university undertook to sue NIC for the recovery of the sh16.7b.
The Government will only proceed to clear the pension funds if Makerere files the suit in the High Court. But the Government committed itself to help the university in the prosecution.

The university will also bear the costs of the suit and that any award as costs shall be for the benefit of the university. But the money recovered will be remitted to the Government.

Earlier, Makerere staff, during the general assembly had yesterday, demanded that an MOU be signed to commit the Government to pay sh16.7b which NIC owed them.

“We are close to having the university re-opened. As soon as the agreement is signed, we will recall the general assembly tomorrow (Friday) and agree to call off the strike,” the staff association publicist, Louis Kakinda, told journalists.

The general assembly’s sitting followed an appeal by the university council chairman, Dr. Charles Wana-Etyem, for the staff to call off the strike since their demands were being handled.

During a three-hour heated debate, staff were divided on whether the strike should be maintained.
The dean of the law school, Prof. Ben Twinomugisha, said since Government had committed itself on most of the issues, “the lecturers at the school of law would immediately resume work”.

He argued that students’ pre-entry exams to the Law Development Centre were getting closer and the students would be gravely affected if the strike continued.

However, some lecturers said it was better to keep the university closed until all issues were resolved, other than having it closed again, weeks after it had been re-opened.

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