TOP
Wednesday,September 30,2020 00:30 AM

NSSF liability hits $13.6m

By Vision Reporter

Added 15th July 2008 03:00 AM

THE National Social Security Fund’s (NSSF) liability has surged to $13.6m (about sh21.8b) from $8.85m (sh14.2b) in November 2001 due to a civil appeal filed by Alcon International, which constructed Workers House.

THE National Social Security Fund’s (NSSF) liability has surged to $13.6m (about sh21.8b) from $8.85m (sh14.2b) in November 2001 due to a civil appeal filed by Alcon International, which constructed Workers House.

By Sylvia Juuko and Alice Kiingi

THE National Social Security Fund’s (NSSF) liability has surged to $13.6m (about sh21.8b) from $8.85m (sh14.2b) in November 2001 due to a civil appeal filed by Alcon International, which constructed Workers House.

David Jamwa Chandi, the managing director, told a press conference that if the liability was cleared seven years ago, the workers would have saved $7m (sh11.2b).

“Alcon is like a chronic cancer eating into our funds. The liability is $13.6m minus legal costs, so it is likely to rise to $20m (sh32.2b). This is the money that was budgeted for Workers House. These people have our title,” Chandi explained.

According to the civil appeal No.2 of 2004 and HCCS No.1255 of 1990, NSSF entered into a contract with M/s Alcon International Ltd, a company incorporated in Kenya, for erection and completion of a partially-constructed structure (now commonly known as Workers House) on Plot No.1 Pilkington Road Kampala.

“Shortly after, construction began, a controversy about who had carried out the construction arose. This is due to the fact that although the contract was awarded to Alcon Kenya; there existed another company, Alcon Uganda belonging to the same family as the Kenyan one, which appears to have carried out all the works,” the appeal reads.

Chandi said the fund had sought legal opinion from the Attorney General and had hired a lawyer, Joseph Byamugisha, to handle the case.

“This historical error happened and unfortunately, the new management should be the ones to resolve the issue. The fund is in the process of considering options to solve it. If it is not solved 10 years from now, these guys will take over the fund,” he warned.

Prof. Mondo Kagonyera, the NSSF deputy managing director, explained that the $20m liability was a statutory figure and the fund was working hard to ensure the amount was reduced.

NSSF liability hits $13.6m

Related articles

More From The Author

More From The Author