Standoff at Posta Uganda
Jan 28, 2007
A row between Posta Uganda’s board and the management about the terms of employment of the managing director Collins Oneko, threatens to explode, and undo the gains made during the last six years of restructuring.
By Juliet Waiswa
A row between Posta Uganda’s board and the management about the terms of employment of the managing director Collins Oneko, threatens to explode, and undo the gains made during the last six years of restructuring.
Sources familiar with the case say that the board is insisting that Oneko sign a new contract in which his consolidated monthly salary of sh14m should include his housing allowance. This means Oneko’s pay will be cut by sh2m.
Oneko signed a three-year contract on July 18, 2006. The contract includes benefits like housing, a company car, and return air tickets to Kenya for his children.
However, the board wants Oneko to pay his house rent, saying the old contract included ‘ambiguous parts’ while the air tickets were over billed. In what is said to be an illegal contract, the board wants Oneko to sign a contract that has been back dated.
Oneko revealed that the board wants him to sign a new contract which eliminates, terms and conditions that were included in the original contract.
“I am not willing to re-negotiate my contract downwards. I have raised my complaints with board audit committee headed by Aisha Lubega and Keith Kalyegira. They are aware of my position,†Oneko said.
In a January 24 email to Dr. Ham Mulira, the information communication technology minister, Oneko hinted at his possible resignation if the issue was not resolved.
“I have reached a fundamental difference with my board and I do not believe in their perceived intentions,†he wrote.
In the email, he disclosed that the board had commissioned a consultant to see how they could terminate his contract prior to the expiry of their (board’s) tenure. The board’s tenure expired on January 25.
Aisha Lubega, the board chairperson, declined to comment on the issue. She said she had been out of town and was not appraised on the current situation.
A source familiar with the situation warned that the board would miss an opportunity to turn the company around by frustrating Oneko.
“The Government has spent sh3.5b over the last six years in restructuring interventions. The board is putting some of the gains at risk because of a few million shillings. It’s unfortunate,†the source said.
A row between Posta Uganda’s board and the management about the terms of employment of the managing director Collins Oneko, threatens to explode, and undo the gains made during the last six years of restructuring.
Sources familiar with the case say that the board is insisting that Oneko sign a new contract in which his consolidated monthly salary of sh14m should include his housing allowance. This means Oneko’s pay will be cut by sh2m.
Oneko signed a three-year contract on July 18, 2006. The contract includes benefits like housing, a company car, and return air tickets to Kenya for his children.
However, the board wants Oneko to pay his house rent, saying the old contract included ‘ambiguous parts’ while the air tickets were over billed. In what is said to be an illegal contract, the board wants Oneko to sign a contract that has been back dated.
Oneko revealed that the board wants him to sign a new contract which eliminates, terms and conditions that were included in the original contract.
“I am not willing to re-negotiate my contract downwards. I have raised my complaints with board audit committee headed by Aisha Lubega and Keith Kalyegira. They are aware of my position,†Oneko said.
In a January 24 email to Dr. Ham Mulira, the information communication technology minister, Oneko hinted at his possible resignation if the issue was not resolved.
“I have reached a fundamental difference with my board and I do not believe in their perceived intentions,†he wrote.
In the email, he disclosed that the board had commissioned a consultant to see how they could terminate his contract prior to the expiry of their (board’s) tenure. The board’s tenure expired on January 25.
Aisha Lubega, the board chairperson, declined to comment on the issue. She said she had been out of town and was not appraised on the current situation.
A source familiar with the situation warned that the board would miss an opportunity to turn the company around by frustrating Oneko.
“The Government has spent sh3.5b over the last six years in restructuring interventions. The board is putting some of the gains at risk because of a few million shillings. It’s unfortunate,†the source said.