“Failure to remit employees NSSF contributions results into penalties and fines to KCCA and delayed remittances denies employees interest earnings on their savings."
PIC: KCCA officials facing parliament's COSASE on Wednesday. (Credit: Miriam Namutebi)
Kampala Capital City Authority officials were Wednesday grilled for failure to remit over sh1b contribution to National Social Security Fund contribution for former workers of the defunct Kampala Capital City (KCC).
The money was the 15% mandatory contribution to NSSF for the mayors and deputy mayors, revenue officers, enforcement officers and casual workers employed by the then KCC.
The Auditor General, in a report to parliament, noted that the arrears date back from the period April 2011 to March 2015.
The Auditor General however noted that KCCA had committed to paying the money inclusive of the 5% employees contribution that was never deducted from their wages, which was irregular.
"Failure to remit employees' NSSF contributions results into penalties and fines to KCCA, and delayed remittances denies employees interest earnings on their savings.
"Furthermore, commitment for payment of 5% deductions from KCCA funds is a loss of tax payers' money," Auditor General John Muwanga said in his report.
Appearing before the committee on commissions statutory authorities and state enterprises, KCCA officials led by the deputy executive director Sam Sserunkuuma attributed the failure to remit the money to misinterpretation of the law.
However Sserunkuma asked the acting director of human resource and administration Richard Lule to explain.
Lule said the delay in remittance was due to the contention regarding the eligibility of the individuals in each of the categories.
"Our understanding was that the listed political leaders and officers on temporary basis and casual workers were not eligible to make NSSF contributions. After getting the guidance, the agreed upon position with NSSF was paid in installment," he said.
But MPs Michael Tusiime (Mbarara Municipality) and committee chair Anita Among demanded to know where KCCA had gotten the money to pay the 5% workers' contribution when they never deducted it from the employees.
"So which budget line did you charge to pay NSSF contribution? This is a case of double payment. You never deducted the money but you are now paying NSSF," said Among.
Lule explained that KCCA has however made plans to recover the money, especially from those who are still serving in the Authority.