Posta managing director resigns

Feb 08, 2007

THE managing director of Posta Uganda, Collins Oneko, has resigned after failing to agree with the board about his employment terms.

By Juliet Waiswa

THE managing director of Posta Uganda, Collins Oneko, has resigned after failing to agree with the board about his employment terms.

Sources close to Oneko said that following a series of meetings with the board and information and communication technology minister, Ham Mulira, they failed to agree on a new contract.

The board wanted Oneko to sign a new contract in which his sh14m monthly salary would include a housing allowance, cutting it by sh2m.

Oneko signed a three-year contract on July 18, 2006, which included benefits like housing, a company car and return air tickets for his children to Kenya.

The board said the old contract included ‘ambiguous parts,’ while the air tickets were over billed. In addition, the board also wanted the new contract backdated.

An employee said Oneko had a “very good” working relationship with junior staff.

“We are actually moaning! We shall miss him,” she added.

Oneko said the board wanted him to sign a new contract, which was different from the original one.

He said earlier: “I am not willing to re-negotiate my contract downwards. I have raised my complaints to the board’s audit committee led by Aisha Lubega. They are aware of my position.”
In a January 24 e-mail to Mulira, Oneko hinted at his resignation if the issue was not resolved.

“I have reached a fundamental difference with the board and do not believe in their intentions, perceived or real,” he wrote.

In the e-mail, he revealed that the board had commissioned a consultant to see how they could terminate his contract prior to the expiry of their tenure. The board’s tenure expired on January 25.

However, a source said by frustrating Oneko, the board would miss out on a great opportunity to turn the company around.
Alex Emmanuel Mulooki is now the acting managing director.

“The Government has spent sh3.5b in the last six years on restructuring, downsizing and change management in a bid to improve the company,” the source said.

“The board is risking some of these gains, setting us back because of a few million shillings,” the source added.

Ordinary mail volumes had steadily grown in 2006 by 5%, registered letters, small packets and M-bags posted in 2006 rose by 43%.

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