Jamwa, Kagonyera refund NSSF cash

Apr 07, 2010

FORMER NSSF boss David Jamwa and his deputy, Mondo Kagonyera, have paid back most of the money they had taken as advances.

By Cyprian Musoke

FORMER NSSF boss David Jamwa and his deputy, Mondo Kagonyera, have paid back most of the money they had taken as advances.

Acting managing director Grace Isabirye yesterday confirmed that most of the money had been refunded. It was deducted from their salaries on a monthly basis during the time they were suspended.

“Ever since the report came out and during their suspension, we have been deducting so the balance has substantially reduced from hundreds of millions, to tens of millions,” Isabirye said.

A report by the Auditor General had found that the two NSSF top men had irregularly allocated themselves huge housing and salary advances. At the time of the audit, Jamwa still had sh244m outstanding and Kagonyera sh111m.

Jamwa’s outstanding amount had dropped to sh32m, while Kagonyera owed the fund no more money, Isabirye said.

“Since the two are no longer getting salaries, we wrote to them recalling every company asset in their possession, and while they handed it over, we asked them to pay the balance.”

Isabirye also said they received communication from Syda Bbumba, the finance minister who supervises NSSF, that she would not renew their contracts.

“She wrote saying she would not renew their contracts, meaning they would cease being the office bearers as of January 31 this year which was the expiry date of their contracts.”

Isabirye became acting managing director after the resignation of former corporation secretary Martin Bandebiire, who briefly held the office after Jamwa was suspended in December 2008. Isabirye was previously the head of investments.

“The board has already taken a position that the vacancy (managing director) is going to be advertised,” Isabirye said, adding that he will contest for it.

“Because of the scandals by former managers that have characterised the Fund, some people think we cannot do a good job which is not true.”

Former finance minister Ezra Suruma in December 2008 suspended Jamwa and Kagonyera following the Temangalo saga in which the Fund bought land belonging to businessman Amos Nzeyi and Arma, a company linked to security minister Amama Mbabazi, at sh11b.

A forensic audit by the Kenyan firm, KPMG, later found numerous irregularities in procurements and transactions with shares and bonds.
It found that NSSF lost sh2.7b in the sale of government bonds, being the difference between the amounts NSSF received for the bonds and the prevailing market price.

Since the bonds were sold a few days before their maturity date, the workers’ fund lost another sh3b in accrued interests.

The report also detailed questionable transactions with shares on the Ugandan stock exchange (USE), using Crane Financial Services, a company belonging to city tycoon Sudhir Ruparelia.

Besides the irregular salary advances and loans given to Jamwa and his deputy, the report also revealed personal expenditures by Jamwa which he charged to NSSF, including expenditures in Las Vegas casinos, amounting to sh72m.

Jamwa had earlier replaced Leonard Mpuuma whose contract was terminated prematurely over abuse of office and corruption in which the Fund lost sh8b.

Mpuuma, together with former board chairman Geoffrey Onegi Obel, were charged in court over the loss.

Former labour minister Zoe Bakoko Bakoru, the supervisor of the fund then, was also implicated but she fled abroad to evade charges.

The financial loss resulted from a botched Nsimbe Housing Estate deal in which the three approved to invest billions of workers’ money in a joint venture with Mugoya Construction Company.

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