Fraud rocks labour unions
Apr 14, 2008
SYDA Bbumba, the labour minister, is investigating allegations of forgeries in the registration of labour unions.
By Alfred Wasike
SYDA Bbumba, the labour minister, is investigating allegations of forgeries in the registration of labour unions.
Investigations have revealed that 11 pseudo and member-less trade unions were gazetted in February last year.
These include the Uganda Government and Allied Workers Union, the National Union of Infrastructural, the Civil Works and Wood Works, the Uganda Market Employees Union, the Uganda Chemical, Petroleum and Allied Union and the Uganda Civil Society Workers’ Union.
Others are the National Union of Local Government Workers, the National Union of Courier, Telecom and Allied Workers Union, the National Union of Drivers, Cyclists and Allied Workers, the National Union of Micro-Finance, Savings and Credit Organisation Workers, the Uganda Farm and Agro-Based Workers’ Union and the Uganda Brewery, Bottling, Distilling and
Allied Workers Union.
Sources said the registration of the new unions was against the decision reached by ministers Bbumba and Mwesigwa Rukutana, in a meeting with the Workers MP, Dr. Sam Lyomoki, also the secretary general of the Confederation of Free Trade Unions (COFTU), Dr. David Ogaram, the commissioner for labour, and the senior industrial relations officer, Bernard Amuriat in December, 2006.
The meeting was a result of a complaint by Lyomoki to President Yoweri Museveni, accusing the ministers of political mismanagement of labour affairs.
During the meeting, Bbumba noted that Lyomoki’s letter suggested that there was a rift and disharmony in the ministry.
Rukutana was angry when he received a copy of the letter. He argued that Lyomoki should have first discussed the issue with the minister before writiing to the President.
The ministers spoke against splitting labour unions. The meeting agreed that the ministry suspends the registration of new labour unions until guidelines for the registration and operation of unions are developed with effect from January 1, 2007.
The commissioner for labour was directed to implement the order by putting it in the Uganda Gazette. The commissioner was only to register new labour unions that had applied before December 31, 2006. It was also agreed that Lyomoki writes another letter to withdraw the earlier one to the President.
However, the National Organisation of Trade Unions, has accused Lyomoki and Ogaram of “colluding to register many mere paper and member-less pseudo labour unions which they immediately affiliated to COFTU.â€
NOTU, in a May 17, 2007 complaint to Bumba, claimed that this had been done during the December, 2006 Christmas holidays.
“Thereafter a ban was instituted stopping registration of any new labour unions,†the NOTU secretary general L. O. Ongaba pointed out adding that the registration was done in only two days.
immediately, warning that NOTU could easily follow suit and register as many unions as possible to counter the number of COFTU labour unions.
But in a June 4, 2007 letter, Bbumba outlined the criteria for registering labour unions. She explained that Section 17 of the Labour Unions Act No.7 of 2006 states that a labour union shall not be registered by any name which is similar to or likely to cause confusion with the name of an existing registered labour union or a labour union which has applied registration.
“My office is investigating the circumstances surrounding the registrations of the unions you have listed down in your letter.
“We intend to establish whether those unions were registered in December, 2006 in accordance with the new Labour Unions Act,†she cautioned.
The minister also said her office was planning a meeting with all the general secretaries of the NOTU and COFTU affiliated unions to discuss how best the unions could work in a harmonised way.
“I hope this meeting will help us to resolve a number of issues and conflicts between the unions and the ministry as well.â€
The letter was copied to Parliament, the IGG, the Uganda Human Rights Commission, leaders of all local registered trade unions and international labour organisations.
However, Matte Sulait, a tourism, trade and industry official, wrote on June 9, 2007, to Rukutana protesting, that he was named as a leader of one of the newly- registered unions, the Uganda Artisan and General Workers.
“I wish to register my protest in the strongest terms of biased reports of new registered unions as published in the Uganda Government Gazette Volume No. 9 of 23rd February 2007 alleging that Uganda Artisan and General Workers had registered as a union under my leadership, as general secretary.â€
“I want to clarify categorically that the informal sector groups known as Juakali/Artisans fall in an organisation known as Confederation of Informal Sector Organisation (CISO) where I work as a secretary and this programme is under ministry of tourism, trade and industry, which is known as Regional Industrialisation in charge of Juakali exhibitions programme.
“We have never registered a union and have no plans o do so. Hon. Minister sir, whosoever pretended that the artisan registered as union under my leadership used my rights fraudulently. Therefore, I want to make it categorically to you that I am going to take legal action against the ministry as a whole and whosoever was involved in this forgery in particular.
“By copy of this letter therefore, the IGG is informed and requested to investigate the alleged 20 registered new unions which were gazetted,†he vowed.
In a related development, the National Forum for Labour Organisations (FOLO-Uganda), a labour union umbrella body, has petitioned the IGG and the gender ministry to investigate allegations of embezzlement, misappropriation and mismanagement of the COFTU.
In letters dated February 25, 2008, the acting FOLO-Uganda chairperson, Rose Okumu revealed that they were in possession of an audited financial statement for 2006 of the COFTU which was submitted to Orphans and Other Vulnerable Children secretariat under the gender ministry on March 23, 2007 and to the Uganda AIDS Commission Secretariat on May 23, 2007 and October 19, 2007 requesting funding for a COFTU Youth HIV/AIDS Prevention programme.
They claimed that an audit firm named The Proficient Auditors & Accountants, that purported to have audited the accounts does not exist in the list of the Institute of Certified Public Accountants of Uganda authorised as February 1, 2008. The New Vision has seen the authorised list.
FOLO-Uganda also alleged that there are a falsified subscription fees of 21 national labour unions without supporting documents, unsupported balance sheet dated November 30, 2006 plus income and expenditure accounts. They also claimed that there is no proof of COFTU Youth HIV/AIDS prevention programme on the ground.
In another development, the Uganda Workers Education Association (UWEA) on March 13, 2008 denied that it gave COFTU a sh116.354m grant as was reflected in the COFTU 2006 financial statement.
UWEA’s lawyers, Onen & Company Advocates, have written to COFTU leadership.
“We act for the UWEA. In the audited financial statement of COFTU for the year ended 2006, it is alleged that COFTU received a grant of sh116.354m from our client, which is not true. Our client has never made that grant and you personally know it yet you caused it to be put in the report.â€
According to the COFTU financial statement, the other donors were the health ministry (sh15m), Every Child (UK) & Africa Revival (UK) sh50m), Public Service International (sh81m), Uganda Parliament through Constituency Development Fund, Dr. Sam Lyomoki & World Confederation of Labour (sh338.296m), International Commission of Jurists (sh137.890m) and the African Human Rights Advocacy Forum (sh188.348m).
“The effect is that our client is implicated in the falsehoods in the financial statement implying complicity on their part in the apparent fraud. In the eyes of the public it would be assumed that our client was party to the fraud or benefited from it,†UWEA’s lawyers wrote.
The complaint is copied to President Museveni, Parliament Speaker, labour minister, Auditor General, ethics minister, registrar of labour unions, IGP, director of criminal investigations, Anti Corruption Coalition Uganda, Uganda AIDS Commission, health ministry and others.
In reaction, the COFTU secretary for finance, Joseph Mbabazi on March 17, 2008 protested to his boss, Lyomoki, claiming that his signature in the COFTU 2006 financial statement was forged.
“There is a reflection of an income in the statement that shows COFTU received grants and membership subscriptions totaling to over one billion Uganda shillings which, I am not aware of. While the undoubtedly forged statement was supposedly signed by the chairman general (Christopher Kahirita), secretary general (Lyomoki) and myself, my signature was forged,†he stressed, threatening litigation against the fraud perpetuators.
SYDA Bbumba, the labour minister, is investigating allegations of forgeries in the registration of labour unions.
Investigations have revealed that 11 pseudo and member-less trade unions were gazetted in February last year.
These include the Uganda Government and Allied Workers Union, the National Union of Infrastructural, the Civil Works and Wood Works, the Uganda Market Employees Union, the Uganda Chemical, Petroleum and Allied Union and the Uganda Civil Society Workers’ Union.
Others are the National Union of Local Government Workers, the National Union of Courier, Telecom and Allied Workers Union, the National Union of Drivers, Cyclists and Allied Workers, the National Union of Micro-Finance, Savings and Credit Organisation Workers, the Uganda Farm and Agro-Based Workers’ Union and the Uganda Brewery, Bottling, Distilling and
Allied Workers Union.
Sources said the registration of the new unions was against the decision reached by ministers Bbumba and Mwesigwa Rukutana, in a meeting with the Workers MP, Dr. Sam Lyomoki, also the secretary general of the Confederation of Free Trade Unions (COFTU), Dr. David Ogaram, the commissioner for labour, and the senior industrial relations officer, Bernard Amuriat in December, 2006.
The meeting was a result of a complaint by Lyomoki to President Yoweri Museveni, accusing the ministers of political mismanagement of labour affairs.
During the meeting, Bbumba noted that Lyomoki’s letter suggested that there was a rift and disharmony in the ministry.
Rukutana was angry when he received a copy of the letter. He argued that Lyomoki should have first discussed the issue with the minister before writiing to the President.
The ministers spoke against splitting labour unions. The meeting agreed that the ministry suspends the registration of new labour unions until guidelines for the registration and operation of unions are developed with effect from January 1, 2007.
The commissioner for labour was directed to implement the order by putting it in the Uganda Gazette. The commissioner was only to register new labour unions that had applied before December 31, 2006. It was also agreed that Lyomoki writes another letter to withdraw the earlier one to the President.
However, the National Organisation of Trade Unions, has accused Lyomoki and Ogaram of “colluding to register many mere paper and member-less pseudo labour unions which they immediately affiliated to COFTU.â€
NOTU, in a May 17, 2007 complaint to Bumba, claimed that this had been done during the December, 2006 Christmas holidays.
“Thereafter a ban was instituted stopping registration of any new labour unions,†the NOTU secretary general L. O. Ongaba pointed out adding that the registration was done in only two days.
immediately, warning that NOTU could easily follow suit and register as many unions as possible to counter the number of COFTU labour unions.
But in a June 4, 2007 letter, Bbumba outlined the criteria for registering labour unions. She explained that Section 17 of the Labour Unions Act No.7 of 2006 states that a labour union shall not be registered by any name which is similar to or likely to cause confusion with the name of an existing registered labour union or a labour union which has applied registration.
“My office is investigating the circumstances surrounding the registrations of the unions you have listed down in your letter.
“We intend to establish whether those unions were registered in December, 2006 in accordance with the new Labour Unions Act,†she cautioned.
The minister also said her office was planning a meeting with all the general secretaries of the NOTU and COFTU affiliated unions to discuss how best the unions could work in a harmonised way.
“I hope this meeting will help us to resolve a number of issues and conflicts between the unions and the ministry as well.â€
The letter was copied to Parliament, the IGG, the Uganda Human Rights Commission, leaders of all local registered trade unions and international labour organisations.
However, Matte Sulait, a tourism, trade and industry official, wrote on June 9, 2007, to Rukutana protesting, that he was named as a leader of one of the newly- registered unions, the Uganda Artisan and General Workers.
“I wish to register my protest in the strongest terms of biased reports of new registered unions as published in the Uganda Government Gazette Volume No. 9 of 23rd February 2007 alleging that Uganda Artisan and General Workers had registered as a union under my leadership, as general secretary.â€
“I want to clarify categorically that the informal sector groups known as Juakali/Artisans fall in an organisation known as Confederation of Informal Sector Organisation (CISO) where I work as a secretary and this programme is under ministry of tourism, trade and industry, which is known as Regional Industrialisation in charge of Juakali exhibitions programme.
“We have never registered a union and have no plans o do so. Hon. Minister sir, whosoever pretended that the artisan registered as union under my leadership used my rights fraudulently. Therefore, I want to make it categorically to you that I am going to take legal action against the ministry as a whole and whosoever was involved in this forgery in particular.
“By copy of this letter therefore, the IGG is informed and requested to investigate the alleged 20 registered new unions which were gazetted,†he vowed.
In a related development, the National Forum for Labour Organisations (FOLO-Uganda), a labour union umbrella body, has petitioned the IGG and the gender ministry to investigate allegations of embezzlement, misappropriation and mismanagement of the COFTU.
In letters dated February 25, 2008, the acting FOLO-Uganda chairperson, Rose Okumu revealed that they were in possession of an audited financial statement for 2006 of the COFTU which was submitted to Orphans and Other Vulnerable Children secretariat under the gender ministry on March 23, 2007 and to the Uganda AIDS Commission Secretariat on May 23, 2007 and October 19, 2007 requesting funding for a COFTU Youth HIV/AIDS Prevention programme.
They claimed that an audit firm named The Proficient Auditors & Accountants, that purported to have audited the accounts does not exist in the list of the Institute of Certified Public Accountants of Uganda authorised as February 1, 2008. The New Vision has seen the authorised list.
FOLO-Uganda also alleged that there are a falsified subscription fees of 21 national labour unions without supporting documents, unsupported balance sheet dated November 30, 2006 plus income and expenditure accounts. They also claimed that there is no proof of COFTU Youth HIV/AIDS prevention programme on the ground.
In another development, the Uganda Workers Education Association (UWEA) on March 13, 2008 denied that it gave COFTU a sh116.354m grant as was reflected in the COFTU 2006 financial statement.
UWEA’s lawyers, Onen & Company Advocates, have written to COFTU leadership.
“We act for the UWEA. In the audited financial statement of COFTU for the year ended 2006, it is alleged that COFTU received a grant of sh116.354m from our client, which is not true. Our client has never made that grant and you personally know it yet you caused it to be put in the report.â€
According to the COFTU financial statement, the other donors were the health ministry (sh15m), Every Child (UK) & Africa Revival (UK) sh50m), Public Service International (sh81m), Uganda Parliament through Constituency Development Fund, Dr. Sam Lyomoki & World Confederation of Labour (sh338.296m), International Commission of Jurists (sh137.890m) and the African Human Rights Advocacy Forum (sh188.348m).
“The effect is that our client is implicated in the falsehoods in the financial statement implying complicity on their part in the apparent fraud. In the eyes of the public it would be assumed that our client was party to the fraud or benefited from it,†UWEA’s lawyers wrote.
The complaint is copied to President Museveni, Parliament Speaker, labour minister, Auditor General, ethics minister, registrar of labour unions, IGP, director of criminal investigations, Anti Corruption Coalition Uganda, Uganda AIDS Commission, health ministry and others.
In reaction, the COFTU secretary for finance, Joseph Mbabazi on March 17, 2008 protested to his boss, Lyomoki, claiming that his signature in the COFTU 2006 financial statement was forged.
“There is a reflection of an income in the statement that shows COFTU received grants and membership subscriptions totaling to over one billion Uganda shillings which, I am not aware of. While the undoubtedly forged statement was supposedly signed by the chairman general (Christopher Kahirita), secretary general (Lyomoki) and myself, my signature was forged,†he stressed, threatening litigation against the fraud perpetuators.