The National Social Security Fund has dismissed allegations that its board had sanctioned the construction of the stalled pension towers at a much higher cost as baseless.

The fund, in a response to the local media stated that they are at the infancy stage and therefore, no money has been allocated by the board to start construction.

“An independent third party procurement agent contracted has commenced the process of procuring a contractor. The financial figures involved in this project were never arrived at by any individual manager or board member but scientifically determined by the project consultants based on technical requirements to complete the project and an independent market assessment” reads the statement.

Adding “The Fund cannot at this point disclose the financial information relating to this project as this could jeopardize the procurement process. The details are kept confidential to maintain”

The local media quoted allegations contained in a dossier to the government’s ombudsman (Inspector General of Government) that fund’s board had approved a hiked budget contrary to that of 2012 and the second accusation was that the fund had secretly given money to Finance Minister, Matia Kasaija to fund his political campaigns. However, Mr .Kasaija has dismissed the allegations and threatened to sue whoever is responsibly making such accusation.

In the dossier, it also alleges that the fund’s Managing Director has been soliciting for commission on the fixed deposits in commercial bank.

However, the dossier to IGG, comes at the time when the fund’s board had just suspended the Deputy Managing Director, Geraldine Ssali who later on sued both the board and the Managing Director Richard Byarugaba.

According to inside sources, ever since Mr Byarugaba returned to the fund for his second term as MD, Ms Ssali and him haven’t been reading from same page. It is alleged that Ssali who acted as MD for more than six months  when Byarugaba’s first term had ended had a back-up of former Finance Minister Maria Kiwanuka and board chairman late Ivan Kyayonga against Byarugaba for the job and hence the bad blood. Inside sources are also questioning independence of the IGG investigators given that Ms Ssali at one time recommended Justice Irene Mulyajonya’s daughter to work in NSSF without going through the recruitment process.

Full Statement  

 Response to Media reports containing allegations against NSSF

We refer to press reports published in the New Vision on Monday May 16, 2016 and today May 29, 2016 in the Sunday Monitor arising out of a letter by a whistleblower containing allegations against the Fund in relation to Pension Towers, financing of political campaigns and commissions from commercial banks. NSSF hereby informs its members that the Fund has consistently for the last four (IV) Financial Years received an unqualified opinion from the Auditor General’s Office and a satisfactory rating of 83 per cent from the Public Procurement and Disposal Authority in its just concluded audit of the Fund in March 2016. In this regard, we proceed to clarify the following:-

PENSION TOWERS The letter published in the New Vision of May 16, 2016, made allegations of impropriety in the structuring and procurement of Pension Towers. The decision by NSSF to undertake commercial developments on Plot 15A/B Lumumba Avenue (Pension Towers) was conceived in the year 2000. Phase I of the project was completed in 2012. On October 31, 2012, the Inspectorate of Government (IGG) directed the Fund to stay any transactions with respect to procurement of the contractor for Phase II. On January 17, 2013, the IGG recommended a fresh procurement process be initiated and outsourced to a third party procurement consultant. In April 2015, having considered the financial feasibility review report, the NSSF Board set a fixed budget to execute all the outstanding works. In June 2015, owing to concerns of deterioration of the existing structure, the Fund requested the Ministry of Works and Transport in liaison with M/S Ssentoogo and Partners (project consultant) to undertake a study on the extent of deterioration. In their separate reports, both recommended that the Fund expedites all pending actions leading to resumptions of works for Phase II taking into consideration the security and structural deterioration risks. Based on the independent market assessment conducted by the Project consultant, the Board approved commencement of the process to procure a contractor for full development of the project to completion. An independent third party procurement agent contracted has commenced the process of procuring a contractor. The financial figures involved in this project were never arrived at by any individual manager or board member but scientifically determined by the project consultants based on technical requirements to complete the project and an independent market assessment. The Fund cannot at this point disclose the financial information relating to this project as this could jeopardize the procurement process. The details are kept confidential to maintain the integrity of the process FIXED DEPOSITS IN COMMERCIAL BANKS In regards to the above allegations, published in both publications made allegations of impropriety in the decisions involving placement of fixed deposits with commercial banks. The decision to invest money in fixed deposits with commercial banks is made in accordance with the Fund’s Investment Policy Guidelines approved by the Board and the Uganda Retirement Benefits Regulatory Authority. The Fund invests in commercial banks that meet Bank of Uganda minimum capital requirements and the Fund’s risk ratings. This process ensures that the Fund’s fixed deposits investments are transparent and not open to individual negotiations, manipulations and commissions of any sort.

 FINANCING OF POLITICAL CAMPAIGNS Allegations were also made that the Fund made contributions to political causes of certain individuals and organisations. The regulatory framework governing management of members’ funds does not allow for expenditure outside the remit of the Investment Policy. Expenditure and investment of member funds is rigorously regulated by law, and the Fund’s accounts are subjected to scrutiny and audit by the Auditor General. The allegations are incorrect and unfounded as no contributions from the Fund have been made to any individual or political organization and in the spirit of transparency, our books and accounts are open for inspection and verification by appropriate independent authorities.

CONCLUSION The Fund regrets the allegations that are contained in the letter carried in both Sunday Monitor and New Vision. We pledge utmost cooperation with the office of Inspector General of Government in the event they proceed to pursue this matter. Management reassures the members of the safety of their savings. The Fund is governed in a transparent and ethical manner to ensure that there is secure, profitable and effective financial management for the benefit of t

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President Yoweri Museveni has said South Korea was able to grow to become 28^th richest nation in the world due to discipline and hard work.

The president made this revelation at State House Entebbe during meeting with the visiting South Korea President Park Geun Hye.

South Korea and Uganda are likely to sign a bilateral cooperation in trade, science, technology and health sectors.

The people of Uganda and myself welcome you to our country on this historic visit.  We salute the Korean people who have, within a period of just 60 years, risen from destitution and poverty to the 28^th richest country in the world today in terms of the size of the GDP and GDP per capita.  The Korean people were able to achieve this on account of discipline, hard work and the development of the human resource through education.  Your father, General Park Chung Hee, played a decisive role in that transformation.

President Museveni said the Korean people are an ancient people whose specific identity can be traced as far back as 1392.  But unfortunately, their nation was divided at the end of the 2^nd World War. Museveni said the African patriots, always support the peaceful reunification of the Korean nation.

Museveni informed his South Korean counterpart that Uganda is undergoing socio-economic transformation through universal education, modernization of infrastructure and the modernization of agriculture.  “With improved infrastructure, we are now able to address the issues of industrialization, the modernization of services and the development of ICT”

There is a great potential for co-operation between South Korea and Uganda for the mutual benefit of both countries.

Uganda and South Korea can buy from and sell to one another.  Uganda, with a population of 38 million people, that will be about 100 million by 2050, is, moreover, part of the huge African continent with a current population of 1.25 billion people.  By 2050, the population of the African continent will be 2.5 billion people.

South Korea is part of the huge Asian continent and its population of 4.4 billion people.  The potential for the two areas is huge.  I am glad you came to visit us so that we put more bricks on that potentially very lucrative co-operation.

This visit makes her the second South Korean president to come to Uganda since the two countries established diplomatic ties in 1963.

Park arrived from Ethiopia, where she addressed the African Union, and will also be visiting Kenya on Monday.

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Trial judge at the 2010 Kampala World Cup twin bombings Justice Alfonse Owiny-Dollo said he believed the death sentence would not act as a deterrent.

This was during sentencing of five of the seven men found guilty for carrying out bombings at at Kyaddondo Rugby Club in Lugogo and Ethiopian Village Restaurant in Kabalagala all in Kampala City that killed at least 76 people who were watching the World Cup finals between Spain and the Netherlands.

“I do not think that the death penalty would assuage the victims and give closure to the indelible pain that society has suffered,” Judge Owiny-Dollo said while explaining why he did not give death sentences, which was an option.

Another suspect Muzafar Luyima, was sentenced to one year of community service after being found guilty of being an accessory to the crime to one year of community service after spending six years on remand in Luzira prison.

The five are Hussein Hassan Agad, Idris Magondu, Habibi Suleiman Njoroge, Muhammed Ali Mohamed and Isa Ahamed Luyima while Suleiman Hajjir Nyamandondo and Hassan Haruna Luyima were given 50-year sentences.  According to prosecution, they were trained by the Somalia-based Islamist militant group al-Shabab.

However, the judge acquitted five of the 13 suspects; Omar Awadh Omar, Muhammed Hamid Suleiman, Yahya Suleiman Mbuthia , Batematyo Abubakari, and Dr Ismail Kalule for lack of sufficient evidence to link them to the terror attacks.

After the first day of trial, defence lawyer Caleb Alaka told reporters that the whereabouts of the five men acquitted on Kampala terror charges were unknown but local media stated that they are now in police custody for their own safety, quoting a state prosecutor.

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