Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1694436152459.pdf (Uganda)
PARLiAMENT OF THE REPUBLIC OF UGANDA REPORT OF THE COMMITTEE ON COMMISSIONS, STATUTORY AUTHORITIES AND STATE ENTERPRISES (COSASE) ON THE PETITION ON ABUSE OF OFFICE AND CAUSING FINANCIAL LOSS TO GOVERNMENT BY KCCA PAYING 10% NSSF CONTRIBUTIONS FOR ITS PERMANENT AND PENSIONABLE MEMBERS OF STAFF Office of the Clerk to Parliament Parliament Buildings Kampala March, 2021 tt> 1~ - - , •1 TABLE OF CONTENTS 1 .0: Introduction 2.0: Methodology pg 3 Pg 3 3.0: 4.0 Prayers by the Petitioner .........................................................pg 4 Committee Observations and Recommendations ............................Pg 5 5.0: Conclusions ......................................................................... pg9 ABBREVIATIONS COSASE Committee on Commissions, Statutory Authorities and State Enterprises COVID-19 Corona Virus Disease 2019 ED KCCA NSSF PSC PS/ST Executive Director Kampala Capital City Authority National Social Security Fund Public Service Commission Permanent Secretary/Secretary to Treasury 0 1.0 INTRODUCTION On 14th February 2020, the Rt.
Hon Speaker forwarded a report to the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) with instructions to investigate and report back within 30 days.

The petition was on the abuse of office and causing financial loss to Government by Kampala Capital City Authority (KCCA) paying 10% National Social Security Fund (NSSF) contributions for its permanent and pensionable members of staff who are supposed to be administered by the Pension Act.
However, the outbreak of the COVID-19 pandemic and the subsequent !ockdown in March 2020 could not allow the Committee to honour the deadline.

The Committee adjourned in March, and resumed meetings in July, 2020 under the strict adherence to the SOPs as issued by the Ministry of Health.

2.0.

METHODOLOGY In processing the petition, the Committee used the following methods; • Meetings with various stakeholders.
The Committee held meetings with the petitioner, Mr. Mohammed K., the Management of KCCA and the Management of NSSF.

• Review of written memoranda.

The Committee reviewed submissions from Public Dmrnission and the Solicitor General.

--A-.

3.0.

PRAYERS BY THE PETITIONER The Petitioner raised the following prayers; That NSSF should be compelled to immediately transfer the equivalent of 10% so far remitted to NSSF since 2013 to the consolidated fund with interest accrued since 2012.
That all the officers of KCCA and NSSF involved in this act which was intended to defraud Government and cause illicit enrichment should be prosecuted in accordance with the law.

That all the KCCA staff who have since retired or resigned from the Authority but were beneficiaries of this illegal Act should be made to pay back the money they received to the consolidated fund failure of which the Accounting Officer who remitted the monies makes good the loss.
That the whistle blower is entitled to be rewarded five percent of the net liquidated sum of money recovered in accordance with Section 19 of the Whistleblowers Act.

2020. a -L ,-,5T r 4.0: COMMITTEE OBSERVATIONS AND RECOMMENDATIONS ON THE PRAYERS 4.1: That NSSF should be compelled to immediately transfer the equivalent of 10% so far remitted to NSSF since 2013 to the Consolidated Fund with interest accrued since 2012.

Observation Rt.
Observation Rt.

Hon Speaker, the Committee observed that the NSSF is an open body, which allows different types of people to make contributions to the Fund.

Apart from the mandatory contribution that allows employees to contribute 5% and their employers to contribute/o, there are other open avenues for saving with NSSF.

Section 10 of the Act allows for voluntary membership.
It states that 'any employer who is not an eligible contributor may apply for voluntary registration as a contributing employer; and any eligible employee of such employer may thereafter apply for voluntary registration as a member of ilw Fund'.

This section allows Public Officers on permanent and pensionable scheme to save with NSSF on voluntary basis.
cc Section 17 of the NSSF Act states that, 'The Treasury may make payments to the fund in respect of those Government employees specified by the Minister responsible for public service who are under fifty-five years of age.
Any payment made under this section shall Xe credited to the account of the employee in respect of whom it is made, and if that A/ employee is not a member of the find, he or she shall forthwithjçuistered and admitted to membership even Utile employee is no longer Jovernmiemp'ee'.

/ The Committee therefore, observed that NSSF was not at fault to accept remittances from KCCA as they could have been voluntary or special contributions as provided for and highlighted in the law above.
Besides, NSSF does not interfere with the managerial issues of their client institutions.

In case KCCA was remitting for permanent and pensionable staff, NSSF had no mandate to direct otherwise.

Recommendation Basing on the facts as embedded in the law, the committee therefore notes that this prayer is not grantable, as it has no legal basis for implementation.

The Co;nmittee t/i erejbre recominen (Is that the prayer s/rn 111(1 be dropped.
4.2: That all the officers of KCCA and NSSF involved in this act which was intended to defraud Government and cause illicit enrichment should be prosecuted in accordance with the law.

Observation on Prosecution of NSSF Officers Rt.

Hon.

Speaker, as observed in the law above, the Committee did not find the Officers of NSSF at fault for accepting remittances from KCCA.
Secondly, the Committee did not find any intentions of NSSF Officers to defraud Government and to cause illicit enrichment as the remittances are not shared among themselves but credited to individual accounts of member contributors.

mmendation The prayer to prosecute Officers of NSSF is not (tenable.

The' 1 Goinmittee therefore recommends that the query be dropped.

, AT~~ Observation on Prosecution of KCCA Officers Rt.

Hon.
Hon.

Speaker, the Committee observed that Officers at KCCA were advised against the irregularity but continued to remit money to NSSF for permanent and pensionable staff.

The Secretary Public Service Commission (PSC) stated that PSC did whatever it could within its powers to guide the KCCA Management on the issue of paying 10% NSSF contributions against the laid down policies but their advice was not taken.
He further stated that it was the PSC that advised KCCA to seek legal interpretation from the Solicitor General on the matter that made KCCA to act.

On 27th May, 2019, KCCA sought guidance of the Solicitor General on how to manage the terminal benefits of their employees.

Although the first opinion cleared KCCA to continue remitting contributions to NSSF, the Solicitor General produced a second opinion that overrode the first one.
It stated that '... in the absence of a specfIc instrument regulating IVSSP contributions of KCCA Staff, KCCA manage/ne/il acted irregularly to subject staff to NSSF contributions instead of applying the Pensions Act'.

Despite the Solicitor General's opinion and advice from PSC, KCCA management continued remitting the same to NSSF.

They continued with the practice because they were direct beneficiaries of the scheme.
The Accounting Officer by then refused to comply with the legal obligation to which he was subjected to.

The Committee found this irregular.

Reco m men d atio n he Committee recommends that the Accounting Officer whoihored the $olicitor / General's advice and continued remitting the funds siiou/ehf 1 ble for the loss of )7f /)UbIiCJiuIi(IS (111(1 should penalized iii accouililnee with the / .
*€ 4.3: That all the KCCA staff who have since retired or resigned from the Authority but were beneficiaries of this illegal Act should be made to pay back the money they received to the Consolidated Fund failure of which the Accounting Officer who remitted the monies makes good the loss.

Observation The Committee observed that remittances had been stopped and recoveries were underway.
During the last meeting the Committee held with the management of KCCA, the new Executive Director, Ms. Dorothy Kisaka informed the Committee that after studying the issue, she found the practice of remitting NSSF contributions to permanent and pensionable staff irregular and this was stopped.
She further informed the Committee that the meetings KCCA held with various stakeholders including Ministry of Public Service, Ministry of Finance, Planning and Economic Development and PS/ST informed her decision to stop irregular remittances.

She further reported that recoveries were to be made from gratuity of both staff who are still in service and those who retired but have not been given their terminal benefits.
Recommendation The Committee recommends that the Accounting Officer of KCCA should expedite the process of recovery oft/ic-funds and remit the same to time Consolidated Fund.

The Ministry of Finance s/mould ensure that iring staff before full recover%made.

I± TL I/ MIX 4.4: That the whistle blower is entitled to be rewarded five percent of the net liquidated sum of money recovered in accordance with Section 19 of the Whistle-blowers Act, 2010.

Observation Rt.

Hon.


Speaker, the Committee observed that the whistle-blower was so patriotic in disclosing the irregularity to higher authorities.

Non-disclosure of the same indicates that KCCA was likely to continue with the ilTegularity unabated.

The whistle-blower is therefore entitled for 5% of the net liquidated sum of money recovered in accordance with Section 19 of the Whistle-blowers Act, 2010.
Recommendation Therefore, upon full recovery of the funds and remitting the same to the consolidated Fund, the whistle-blower should be paid within six months as the law stipulates.

5.0: CONCLUSION Rt.

Hon.

Speaker, the Committee is pleased to report to you that the irregular practice of remitting NSSF contributions to permanent and pensionable staff has been stopped by the new ED of KCCA and efforts to recover the funds are underway.
The Committee observes that there is no instrument by the Ministry of Public Service that declares KCCA as the 'Other Public Service'.

Therefore, it is still governed by the same custodian laws of Public Service.

KCCA can pursue that option and obtain an instrument that can enable it to,,ake its own Pension Scheme as provided by Parliamentary Commission and' Public Services'.

- - S A-~- -- 7 M 7NA~~- Rt.

Hon Speaker, the Committee commits the report to you and the recommendations therein.
The Committee regrets the unavoidable delay in completing the assignment.

We thank you for the assignment.

Attachments: I. Rt.

Hon.

Speaker's forwarding letter Petition Solicitor General's Opinion cc iL SIGNATURE SHEET FOR COSASE MEMBERS DAY ONE NO - - - NAME Hon.

Munyagwa Mubarak - Chairperson Hon.

Kasozi Ibrahim 3.

Hon.

Twesigye Nathalo Hon.MbabaziJanepher Hon.BabaDin_Margaret Hon.AkurutAdomeViolet Hon.BukenyaMichael Hon.

Abigaba Cuthhert Hon.


Woboya Vincent____ - Signature - Hon.

MgaheDonozio Hon.

Twesigye John Ntarnuhlira Hon.

Sekindi Aisha Hon.

Muyanja Mbabali Hon.

Abala David Hon.

Angudru Moses Hon.

Mgema Peter Hon.

Mwhe Sheila Kabaije Hon.

Nagwomu Moses M Hon.

Mwine Mpaka Rwamirama Hon.

Kunihira Agnes Hon.

Byandala Abraham - Hon.

Arnede_Agpes HonAkarrphraProsy Hon.Kibj_u Naome Hon.

Paul Mwiru Hon.

Ssernujju Ibrahim - Hon.

Allan Ssewanyana Hon.

Medard Sseggona Hon._Ocan Patrick -- 1 Hon.


Micheal_MawandaMaranga_-- Hon.

Gideon Onyango Hon.

Stella Kiza Hon.

Mohamed Nsereko Hon.

Kato Lubwama Hon.

Namujju Cissy - if PARLIAMENT OF UGANDA Speaker's Chambers • .,• .... ... ..:.

 THE REPUBLIC OF UGANDA PARLIAMENT HOUSE P. 0.

Box 7178, KAMPALA - UGANDA Plot Nos.16-18, Parliament Avenue +256-(0)414-346806 Direct line: +256-(0)41 4-3771 00 +256-(0)414-377000 +256.
(0)414231296 General line: Fax: Email: speaker©parliament.go.ug ................................................................ 14th February, 2020 The Chairperson PAC(COSASE Parliament House P. 0.

Box 7178 KAMPALA RE: PETITION ON ABUSE OF OFFICE AND CAUSING FINANCIAL LOSS BY KCCA CAUSING 10% NSSF CONTRIBUTIONS BY GOVERNMENT FOR STAFF UNDER THE PENSION ACT I received a complaint against the administration of Kampala Capital City Authority (KCCA).
The complainant alleges financial loss to Government by KCCA causing Government to contribute 10% of monthly contributions to NSSF yet some of the officers employed in KCCA are on permanent and pensionable terms which places their contributions under the Pension Act and not NSSF Act.

I therefore refer this matter to your Committee for thorough and expeditious investigation.

Please report to me within 30 days from the date of receipt of this letter.
/ Rebecca A. Ka.aga (MP) SPEAKER OF PARLIAMENT OF UGANDA THE REPUBLIC OF UGANDA PETITION ON ABUSE OF OFFICE AND CAUSING FINANCIAL LOSS BY DIRECTOR HUMAN RESOURCE KCCA AND STAFF OF KCCA APPOINTED BY THE RELEVANT SERVICE COMMISSIONS IN PUBLIC SERVICE AS CIVIL SERVANTS To: Rt.

Hon Madam Speaker Parliament of Uganda KAMPALA Inspector General of Government IPPS Building KAMPALA INSPECTOPSATE OF GOVERNMENT P.O.
BOX 1682, KAMPALA ,21A1JG2O1g G _civE &c LLNTRAL REG!STRY Lieutenant Colonel Edith Nakalema State House Anti-corruption unit KAMPALA t. o- ?-• INTRODUCTION.
In pursuit to section 2, 3 and 19 of the Whistleblowers Act 2010 any person may make a disclosure of information where that person reasonably believes that the information tends to show that a corrupt, criminal or other unlawful act has been committed, is being committed or that a public officer or employee has failed, refused or neglected to comply with any legal obligation to which that officer or employee is.

subject.
subject.

This humble Petition is filed by a concerned citizen who is committed to fighting against corruption and abuse of office.

BACKGROUND OF THE PETITION.
The petitioner is a concerned citizen who is concerned with the manner of how the Administration of Kampala Capital City Authority especially the Executive Director and Director Human Resource have continued to cause financial loss to government by causing government to contribUte 10% of one's monthly salary as contribution to NSSF yet some of the officers employed in KCCA are on permanent and pensionable terms who are entitled to pension under the Pensions Act or contract gratuity for those on contract.
For God and My Country pg.1 Dated 20" August, 2019 Zero Tolerance to corruption.
This provision does not apply to KCCA staff on contract with payment of gratuity for the following reasons- 3 (I) Neither does the KCCA Act, 2010 nor any other written law that I know of require Government to contribute 10% to employees of KCCA to NSSF in addition to being paid gratuity and if it was the case the same would apply to civil servants in the same category including permanent secretaries among others.
(ii) Even if it was the case the records at KCCA and NSSF indicate that all the KCCA staff in that category government is contributing 10% to NSSF of one's monthly salary without reducing the 10% from the amount of gratuity paid which amounts to double payment from Government thus causing financial loss.

(c)Those employed on permanent and pensionable terms by the relevant service commission including the Public Service Commission, Education Service Commission and Health Service Commission.
Without any explanation this category of staff is expressly exempted from contributing with NSSF under section 8 read together with the first schedule of the National Social Security Fund Act Cap 222.
However, to my surprise KCCA administration does contribute 10% as the employer to this category of staff in addition to this category being permanent and pensionable and are entitled to pension under the Pensions Act when they retire as opposed to their counterparts in other government departments who are also Permanent and pensionable.
It is the petitioners' contention that since 2012 Trillions of (Janda Shillings have been lost in this illegal scam and pray as follows- All the KCCA staff on contract and are being paid gratuity are not mandatorily required to contribute with NSSF though they can join the voluntary scheme without Government contributing 10% of their monthly salary to NSSF and NSSF should be compelled to immediately transfer the equivalent of 10% so far remitted to NSSF since 2012 to the Consolidated fund with interest accrued.
All the KCCA staff on permanent and pensionable terms whether on probation or permanent terms are not required to contribute with NSSF though they can join the voluntary scheme without Government For God and My Country pg.3 Dated 20" August, 2019 Zero Tolerance to corruption.
TflEGRAMS: ADMINISTER' ATTORNEY GENERAL 0414 343841 MTNTSTFR OF STATE 0414 343401 .SOLICITOR,GENERAL 04I34394I UNDESECRETARY: 0414-342261 GENERAL LINES: 0414-230538/9 FAX: 0414-230802/254829 WEBSITE: wwwjustice go.ug W MINISTRY OF JUSTICE AND CONSTITUTIONAL AFFAIRS P 0BOX 7183 KAMPALA - UGANDA THE RPU86 OrUOAHDA In aycorrespondence on thIssubjet ADM .7/1 77/01 11th Setember, 2019 The Secretary Public Service Commission P.O Box 7080 Kampala.
REQUEST FOR REVIEW OF LEGAL OPINION ON TERMS AND CONDITIONS OF STAFF OF KAMPALA CAPITAL CITY AUTHORITY (KCCA) (PAYMENT OF MANDATORY NSSF CONTRIBUTIONS) Reference is made to your letter referenced ADM 121/185/01 and dated 161h August, 2019 on the above matter; and wherein you made reference to our opinion dated 15th July, 2019 and requestedfor a legal opinion on the following issues: (a)\A'hether KCCA staff appointed on probation or otherwise later confirmed and admitted to the Government pensionable establishment are entitled to the 10% Government/Employer contribution to NSSF regardless of the form or content of the appointment letters/Agreement Forms.
(b)Whether management of KCCA would be acting lawfully by specifying other Terms and Conditions of Service in their Employees appointment letters outside those indicated in the lnstrument/ Minutes of appointment by the Appointing Authority or Service Commissions.

For example, an employee on Permanent and Pensionable terms whose appointment letter stipulates that the employer shall make a contribution to NSSF.
public officer in the service of KCCA will become pensionable when he or she is appointed and confirmed by the relevant Service Commission.

This applis to any officer earlier on holding a pensionable office before being a pointed under KCCA in an established office in accordance with the Uganda Public'Service Stan ding Orders (Section A-b).

Pursuant to Article 254 of the Constitution, a pensionable office includes a Iegl right to pension and gratuity cchiputed in accordance with the Pensions Act (Cap 286.
It is also clear in the "Revised Guidelines for implementation of the Kampala Capital City Authority Structure", issued by the 2nd Deputy Prime Minister and Minister of Public Service on April 2, 2012 under clause 4.5(a) that, "Public officers holding permanent and pensionable appointments and who are confirmed in service will receive pension in accordance with the Pensions Act" It follows therefore that unless discretion is exercised by the Pensions Authority, the pensions law is applicable and mandatory to KCCA staff appointed on probation or otherwise later confirmed and admitted to the Government pensionable establishment or those who were holding a pensionable office before being a pointed under KCCA.
Such staffare not entitled to the 10% Government/Employer contribution to NSSF.

(b) Whether management of KCCA would be acting lawfully by specifying other Terms and Conditions of Service in their Employees appointment letters outside those indicated in the Instrument!

Minutes of appointment by the Appointing Authority or Service Commissions.

For example, an employee on Permanent and Pensionable terms whose appointment letter stipulates that the employer shall make a contribution to NSSF.
As stated above, Section 25 (4) of the KCCA Act is clear.

It provides that the terms and conditions of persons in the service of the Authority shall be prescribed by the Ministry responsible for the public service.
/ / '7 The said Capital City is governed and administered by KCCA on behalf of the Central Government in accordance with section 5(3) of the Kampala Capital City Authority Act, 2010 which states as follows: "The Authority is the governing body of the Capital City and shall administer the Capital City on behalf of the central government subject to this Act."

It f011ows therefore that KCCA is part of Central Government.

KCCA is however not a ministry but an agency.


because it is a body corporate and can sue in its own name (not through Attorney General) but it is unique because its governing body was statutorily not given certain powers like determining terms and conditions of service for KCCA staff as is the case with other agencies.

It is a unique government agency.


(e) The mandate, meaning, applicability and procedure for prescrib!ng terms and conditions, actualizing necessary modifications under section 25(4) and (5) of the KCCA Act, 2010, and whether in absence of legal provisions or approved specific guidelines regulating NSSF contributions of KCCA Staff, KCCA management acted lawfully and the available options to resolve the issue.
Section 25 (4) & (5) of the KCCA Act provide as hereunder: The terms and conditions of persons in the sen/ice of the Authority shall be prescribed by the Ministry responsible for the public service.

Any enactment applicable to members of the public sen/ice or education service or health service of the central government shall, with necessary modifications apply to the relevant persons in the service of the Authority as described in subsections (1) and (2)."
Our interpretation of Section 25(4) is that, it was envisaged that the Ministry of Public Service would determine the terms and conditions