MPs probe NSSF over sh240b
Jul 06, 2010
MPS probing the mismanagement of the National Social Security Fund (NSSF) on Monday questioned the officials over sh240b in the suspense account.
By Milton Olupot
and Racheal Ninsiima
MPS probing the mismanagement of the National Social Security Fund (NSSF) on Monday questioned the officials over sh240b in the suspense account.
A suspense account is one in which money is temporarily recorded. It is used when the proper account cannot be determined at the time the transaction is recorded.
According to the human resource manager, Hope Bizimana, NSSF receives about sh26b per month.
The state enterprises committee, chaired by Reagan Okumu (FDC), is investigating the officials on queries raised in the Auditor General’s report on NSSF operations between February 2005 and November 2009.
The NSSF acting managing director, Grace Isabirye, said the suspense account was not fraudulent.
Isabirye explained that there were errors, especially involving the particulars of the contributors.
He said the system of ascertaining the particulars of contributors had been improved, which had led to the reduction of the money in the suspense account to sh74b.
NSSF chief finance officer Julius Ishungisa accused some staff of stealing cheques processed for contributors who retire.
He noted that this was the reason a private investigator, Freddie Egesa, was secretly hired to probe the clique.
Egesa, who was paid sh82b to investigate the fraud, implicated some staff who were sacked.
Ishungisa said as the internal auditor at the time, he found three staff to be involved, which led to their dismissal.
The committee lead counsel, Elijah Okupa, insisted that the fund management produces a financial manual showing how the suspense account operates.
The MPs also questioned variations in the lease and hire purchase contracts in which out of the sh2.8b that was supposed to hire 67 Nissan cars, only sh2.5b was paid and only 60 cars were procured.
Procurement manager Alex Muhwezi took responsibility for failing to adhere to the PPDA regulations when they changed from leasing to hire purchase and, eventually, to direct buying of the cars.
Okumu told the CID to summon embattled former managing director David Chandi Jamwa to explain his role in the pension fund’s mess within this week.
Jamwa, who is accused of causing a financial loss of sh2.7b to NSSF, was released on bail on Friday.
and Racheal Ninsiima
MPS probing the mismanagement of the National Social Security Fund (NSSF) on Monday questioned the officials over sh240b in the suspense account.
A suspense account is one in which money is temporarily recorded. It is used when the proper account cannot be determined at the time the transaction is recorded.
According to the human resource manager, Hope Bizimana, NSSF receives about sh26b per month.
The state enterprises committee, chaired by Reagan Okumu (FDC), is investigating the officials on queries raised in the Auditor General’s report on NSSF operations between February 2005 and November 2009.
The NSSF acting managing director, Grace Isabirye, said the suspense account was not fraudulent.
Isabirye explained that there were errors, especially involving the particulars of the contributors.
He said the system of ascertaining the particulars of contributors had been improved, which had led to the reduction of the money in the suspense account to sh74b.
NSSF chief finance officer Julius Ishungisa accused some staff of stealing cheques processed for contributors who retire.
He noted that this was the reason a private investigator, Freddie Egesa, was secretly hired to probe the clique.
Egesa, who was paid sh82b to investigate the fraud, implicated some staff who were sacked.
Ishungisa said as the internal auditor at the time, he found three staff to be involved, which led to their dismissal.
The committee lead counsel, Elijah Okupa, insisted that the fund management produces a financial manual showing how the suspense account operates.
The MPs also questioned variations in the lease and hire purchase contracts in which out of the sh2.8b that was supposed to hire 67 Nissan cars, only sh2.5b was paid and only 60 cars were procured.
Procurement manager Alex Muhwezi took responsibility for failing to adhere to the PPDA regulations when they changed from leasing to hire purchase and, eventually, to direct buying of the cars.
Okumu told the CID to summon embattled former managing director David Chandi Jamwa to explain his role in the pension fund’s mess within this week.
Jamwa, who is accused of causing a financial loss of sh2.7b to NSSF, was released on bail on Friday.