Trial of ex-NSSF boss Jamwa begins
Dec 14, 2010
THE trial of the former NSSF managing director, David Chandi Jamwa, opened yesterday with the Crane Bank boss denying that Jamwa recklessly sold off Treasury Bonds before their maturity.
By Anne mugisa
And Edward anyoli
THE trial of the former NSSF managing director, David Chandi Jamwa, opened yesterday with the Crane Bank boss denying that Jamwa recklessly sold off Treasury Bonds before their maturity.
Testifying as the fourth prosecution witness, Crane Bank managing director Ami Kalani said his bank bought the premature NSSF bonds.
Kalani argued that although premature, the bonds fetched a profit, selling for more than what NSSF bought them.
He explained that his bank was also taking over all risks, including the possibility of upheaval in the country delaying cashing of the bond.
He agreed with Jamwa’s lawyer, David Mpanga, who said money at hand was better and more valuable than money at a future date.
Jamwa is charged with abuse of office and causing the National Social Security Fund financial loss to the tune of sh3.163b through arbitrary actions in disregard to NSSF interests.
According to the Inspectorate of Government, the bonds were sold off at a price below their discount value. Sydney Asubo of the Inspectorate is the prosecutor. Two NSSF financial bosses and the Bank of Uganda Director of Financial Markets, Stephen Kaboyo, also testified. Kaboyo, who testified as an expert witness, explained the working of treasury bills and bonds.
The others who testified were NSSF’s investments accountant, Merinah Mungoma and Grace Isabirye, the fund’s chief investment officer.
Mungoma testified that the NSSF management investment committee had stopped meeting to decide on investments. Instead, memos were written by Isabirye detailing what investments to carry out.
However, Isabirye said meetings took place, citing a retreat to Paraa Safari Lodge, where the investments were discussed.
Mungoma added that the problem with the disposal lay with investment analysts who did not give Jamwa correct information.
She also said Jamwa only implemented what was agreed on in a series of NSSF top management meetings.
Trial continues today.
And Edward anyoli
THE trial of the former NSSF managing director, David Chandi Jamwa, opened yesterday with the Crane Bank boss denying that Jamwa recklessly sold off Treasury Bonds before their maturity.
Testifying as the fourth prosecution witness, Crane Bank managing director Ami Kalani said his bank bought the premature NSSF bonds.
Kalani argued that although premature, the bonds fetched a profit, selling for more than what NSSF bought them.
He explained that his bank was also taking over all risks, including the possibility of upheaval in the country delaying cashing of the bond.
He agreed with Jamwa’s lawyer, David Mpanga, who said money at hand was better and more valuable than money at a future date.
Jamwa is charged with abuse of office and causing the National Social Security Fund financial loss to the tune of sh3.163b through arbitrary actions in disregard to NSSF interests.
According to the Inspectorate of Government, the bonds were sold off at a price below their discount value. Sydney Asubo of the Inspectorate is the prosecutor. Two NSSF financial bosses and the Bank of Uganda Director of Financial Markets, Stephen Kaboyo, also testified. Kaboyo, who testified as an expert witness, explained the working of treasury bills and bonds.
The others who testified were NSSF’s investments accountant, Merinah Mungoma and Grace Isabirye, the fund’s chief investment officer.
Mungoma testified that the NSSF management investment committee had stopped meeting to decide on investments. Instead, memos were written by Isabirye detailing what investments to carry out.
However, Isabirye said meetings took place, citing a retreat to Paraa Safari Lodge, where the investments were discussed.
Mungoma added that the problem with the disposal lay with investment analysts who did not give Jamwa correct information.
She also said Jamwa only implemented what was agreed on in a series of NSSF top management meetings.
Trial continues today.