The Inspector General of Government Ips Building Kampala
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THE INSPECTOR GENERAL OF GOVERNMENT IPS BUILDING KAMPALA RE: COMPLAINT REGARDING CORRUPTION, INTERFERENCE AND INFLUENCE PEDDLING IN PROCESSES AND FLOUTING OF PROCEDURES AT NSSF. We concerned citizens of this country would like to bring to your attention, corruption of the highest order coupled with flouting of procedures and influence peddling in processes that is taking place at NSSF by top managers. It has become a habit by top managers at this institution to openly flout and disregard laid down procedures in deals where they have interest. The under listed are some of the shoddy transactions that have taken place or are about to take place at NSSF. If nothing is done by your office and other relevant offices to stop these managers, then we shall have to take some other means to save our money before it is too late. 1. Disposal of land at less than the cost price. National Social Security Fund had a plot of Land at Namirembe in Kampala which was purchased during David Jamwa’ time at 750m. This plot has been sold at 650m after three years. This was against the auditors advice who proposed that since there was a claim that the plot has no access, the Fund should first take the option of getting access under the Road Access Act which makes it mandatory to acquire access in case your property has no access. It is very clear that the top managers had an interest in selling this plot because all the other transaction of selling un utilized plots were put on hold apart from this one and the transaction was hurriedly concluded during Christmas holidays when the Fund had closed business for that year, the contract was signed on 20th December 2012 to make sure that the parties who were against this transaction would find it concluded by the time NSSF opens for business for the new year.(see date on the signed agreements.( Appendix A).Note that NSSF closed business for the Christmas holiday on 18th December 2012. We are reliably informed that the Corporation Secretary had an interest and had to do whatever it takes to make sure that the plot is sold. It is on record that he tricked the Chairman of the board to sign the sales agreement after writing a memo to him advising him to give a go ahead to the sale. We are informed that the NSSF and Bank of Uganda Auditors were against the sale and even the Contracts Committee advised that the plot should not be sold but all this was ignored by the Managing Director, Corporation Secretary and the Chairperson of the board and the plot was sold at 650m which is 100m less than what it cost. 2. The buying of 25billion Umeme Shares is another shoddy deal that has cost the workers of this country to lose their hard earned savings to the top managers at NSSF. This transaction was forced on NSSF by the Chairman of the board and the top managers who had different interests in this transaction. The Chairperson, wanted Umeme shares bought so that they can get money and pay a long standing debt of around 20 billion that Umeme had accumulated at shell Uganda limited. The top three managers (Managing Director, Deputy Managing Director and The Corporation Secretary) of NSSF were given cash and shares. Madam IGG, corruption has taken another sophisticated form that it is not easy to trace the culprits or directly pin them. The Managing Director, Deputy Managing Director and the Corporation Secretary benefited in a more sophisticated manner through Orient Bank where Umeme paid their top managers huge amounts in terms of shares and in turn these will be transferred to the top three managers of NSSF. The directors at Umeme were each given shares of $75000 and managers $10000 each, all these will be transferred to the names of the top three managers at NSSF as a token of thanks for pushing this transaction through because in one of the meetings they secretly had with the front men that were negotiating the deal for NSSF managers, the Umeme delegation informed the NSSF negotiators that if NSSF does not buy then the whole IPO will flop and it is at this stage that they promised to give them shares through paying the Umeme directors. It should be noted that the Solicitor General refused to clear this transaction and even advised that the Umeme concession was irregular as per the parliament of Uganda findings. However, due to the interest in this deal, the top managers ignored the Solicitor General and went ahead and bought shares worth 25billion.(see Solicitor General’ advice.( Appendix B) and they have since the closure of the IPO bought more shares worth 10 billion and now the total amount spent is 36 billion. To make sure that this transaction is not stopped, the board members of NSSF were not consulted apart from the Chairperson Ivan Kyayonka who also had his interest (See minutes of the Board where the Chairperson Apologized to other Board members for not consulting them. (Appendix C). it should be noted that we consulted our lawyers Kibedi and Company Advocates who have clearly indicated that this transaction was illegal. In addition to the above, there is clear conflict of interest by the Chairperson of the board Mr. Ivan Kyayonka. Shell Uganda Limited where Ivan is the Managing Director is one of the top business suppliers of Umeme, Ivan forced NSSF in his capacity as the Board Chairperson to buy shares. It is on record that just in the year 2012 Umeme paid Shell 1.7billion for supplies and there was no way Ivan wouldn’t go out the way to help Umeme as one of his major clients. (see attached list of payments made by Umeme to shell.( Appendix D) therefore Mr. Kyayonka lied to the board of NSSF that there was no conflict of interest and that Shell had stopped dealing with Umeme in 2011. 3. Madam IGG, the top managers (Managing Director, Deputy Managing Director and The Corporation Secretary) have a complicated system of giving waivers on contributions to selected companies and in turn this money is shared by the top managers and their front men in NSSF. The top managers (Managing Director, Deputy Managing Director and the Corporation Secretary) together with the manager Contributions called Hez Alinda are the people involved in this scum. One of the companies that has benefited from this scum is Munyonyo resort hotel where the resort had unpaid contributions of 1.2b which figure was reduced to 400m after paying these people on top of giving some of these Guys fully paid trips abroad. For example Mr Byarugaba was sponsored by Surdiri Ruperelia to go to india to watch formula one racing cars. The list of other companies that have benefited from waiving contributions is as follows. 1. SBI (M/s Soleh Boneh international holdings AG, had unpaid contributions of 360m and was reduced to 60m 2. Spencon and Roko Techinical services ltd which received a waiver of 272,892,574m 3. MCRL received a waiver of 248,247,105m 4. SGH received a waiver of 143,016,683m. We are reliably informed that they agreed that in order for this money not to be detected easily they should always channel it through a money lending company owned by David Nambale and the sharing is done afterwards. Madam, these senior Managers are dealing with some of your Directors to exonerate them whenever they are implicated, for example the top managers waived contributions for Barclays bank but among the companies that were investigated when a similar complaint was brought to your office nothing was mention about Barclays Bank. Madam, there was a meeting between these top managers and one of your directors to exonerate them on transactions they had waived which would implicate them so that they would go back and re audit and there are plans to change the findings of the report. To confirm this trick, Barclays bank has just been re audited and arrears of 1billion have been discovered again. Madam IGG, this is just a small portion of the waivers that have been given and money paid back to the four managers and the whole issue is covered. It should be noted that this money is for the workers who have tirelessly worked and at the end when they go to claim, they will find nothing and these managers will have long gone with their loot. There is no way all this can happen without the knowledge of the top three(Managing Director, Deputy Managing Director and he Corporation Secretary) or Manager Contributions (Hez Alinda) A similar complaint had been lodged at your office before, investigated and the findings are very clear that some officers should be dismissed. However, to our surprise these people are still in office and some of them have been given fresh contracts of three years. There is overwhelming evidence that these characters have amassed a lot of wealth which cannot be accounted for. For example Hez Alinda should explain the huge/massive investment in the building in Hoima town. It should be noted that this boy ( Hez Alinda) joined NSSF around 2004. Madam the situation is becoming more tense every second that passes and after your investigations started, Hez vowed/threatened to reveal all the dirt if he is sacked/terminated/dismissed by management and in order for them not to be exposed, they are looking for ways of covering up and protecting Hez. One of the ways they are looking at is to make sure that they deal with your directors to change the report before it reaches you.