THE INSPECTOR GENERAL OF GOVERNMENT IPS BUILDING

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 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 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 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 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. This assignment has been given to the Corporation Secretary (David Nambale) who is using his connections at your office to change the report. Note that David Nambale was working at your office until Justice Jotham Tumwesigye could no longer accommodate his shoddy behavior and advised him to leave.

4. Madam IGG, NSSF has land at Lubowa totaling to approximately 563 acres. However, more than 10 acres have stealthily disappeared without the knowledge of the board. This is a one man transaction. The Corporation Secretary colludes with the neighbors and they shift the pillars marking the boundaries of NSSF land, make titles and he is paid 200m shillings per acre (see a report indicating encroachment by the surveyor. (Appendix F). We are reliably informed that this money was channeled through a money lending company owned by David Namable in order not to be detected easily. It should be noted that the Corporation Secretary on several occasions has frustrated the efforts by NSSF to try and evict the encroachers. In one of the transaction he was given a Mercedes Benz number UAR 244U Blue in color and in another transaction a Range Rover Sport green in colour.

5. Dismissing and victimizing of staff members that stand in their way. It should be noted that these senior managers are frantically victimizing staff who are suspected to have been whistle blowers of their scams or those managers who have refused to comply with these fraudulent activities. The relevant authorities should promptly intervene otherwise most innocent staff will be victimized since they now know that their actions/scams have been uncovered and reported in various relevant offices. A case in point is that of the former branch manager of Lugazi Mr. Fred Bushuyu, Who was given one hour to hand over as if he was a thief. They claimed to have terminated his contract because of non performance, but there are even mails sent by Mr. Byarugaba himself thanking Bushuyu for hitting his targets. It is common for staff member who are not wanted not to be appraised and they either find the appraisal reports without marks or supervisors giving them marks of their choice without going through the appraisal process, case in point is the appraisal of the then Head of Procurement Mr. Ellias Biryabaho, for the period he was at the Fund the supervisor deliberately refused to appraise him. The appraisal reports we have accessed clearly confirm this and no one would bother to find out why some staff members had no Marks in the appraisal report of the Fund.

6. Madam IGG, the rate at which the workers funds are misused is alarming. In one of the cases the Corporation Secretary while on leave of two weeks used his phone and a bill of 11.4million was paid by NSSF without any query this is on top of the Fund changing his phone set every three months. (See the attached payment voucher for the telephone bill. (Appendix G). Workers money has been spent by top three managers by fueling their private cars and those of their spouses. If they are denying this let them produce print outs of fuel consumption and the vehicle numbers that have consumed the fuel and you crosscheck with the printouts from petrol stations where they take this fuel from. (We have these printouts) It should be noted that where the top managers have interest, spending any amount of workers money and flouting procedures is regarded as being innovative and where they have no interest, they cost cut. For example Management is clearly victimizing permanent staff, terminating their contracts in favor of temporary staff who are paid 46000 per day in the name of cutting costs because the temporary staffs do not have any benefit like gratuity or being on a medical scheme or leave, they work as slaves and they are paid for the day they work. When it comes to where they have interest, no matter what happens any amount of money can be spent. For example the top managers recently organized a trip of around 30 managers to Chobe lodge for three nights and the Fund spent more than 50million. Because they were interested in this trip they did not even bother to go through the procurement process to procure this lodge. Do you need to go to Chobe to be able to plan properly for how to invest Workers Money? If this is not misuse of workers money then what is it?

7. Madam IGG, there was interference in the process during investigations conducted by your office on the procurement process for the contractor for the Pension Towers, the Deputy Managing Director interfered with the process of investigations by approaching one of your investigators called Mr.Kasirye. It is an open secret that this lady visited Mr Kasirye in office on three occasions to influence the out come of the recommendation because the top managers had received money from one of the contractors who was not going through and they wanted the process cancelled and restarted so that the contractor who had paid money can re-organize his documents and rebid. This lady signed in your visitors’ book on three occasions and you can also check you CCTV Cameras for this evidence. The lady used to communicate using the following numbers 0417331002 and 0756061160 to Mr. Kasirye’ phone number 0779212962, this can be checked using phone printouts from both companies. There is no doubt Mr.Kasirye benefited from these investigations and we are reliably informed that he received 60m from an apartment in Mbunga to recommend cancellation of the process.

8. Abuse of office at the Fund is the order of the day and the abusers know that nothing can be done to them, for example training is for only the three top managers and their blue eyed boys and girls. It is on record that when they requisition for Funds for these training they do not attend, they just use these trainings as cover to get money and go and do their own things. The recent one was just in March 2013 when the Deputy Managing Director requisitioned for funds to go for a training work shop in Dubai for a week which started on the 16th/3/ 2013 and ended on 21st/3/2013. However, the Deputy Managing Director left Kampala on 19th/3/2013 in the evening and returned on 21st/3/2013. It is on record that if she attended, then it was for one day and returned on the following day but the Fund paid for the whole course. She received a business class ticket just to go to Dudai and back without attending the workshop. The following week she was on a plane again together with the Corporation Secretary still using NSSF Funds purportedly for training in the USA. (See attached documents of when the workshop started and when she travelled)

9. Madam IGG, workers money is being spent the way they like without following required procedures and approvals. It is on record that the Deputy Managing Director and the Corporation Secretary are earning much more than they negotiated, what happened is unbelievable; they dealt with the minister of finance (Aston Kajara) to increase their salaries without the approval of the then board. In fact the then Chairperson Mr Vincent Seekono rejected and that is when they openly started undermining Seekono and taking lies to the Minister so that his contract shouldn’t be renewed and they succeeded.

10. Madam, workers money should be saved from these sharks. You may be aware of the joint venture that NSSF had entered into with SBI to build houses at Lubowa. First of all, this joint venture contract was not approved by the Solicitor General which rendered it an illegal transaction. NSSF went ahead under Jamwa and gave a loan to SBI of 1million Dollars, when the process to regularize the transaction started, it was agreed that SBI be contracted directly to design and supervise the project and a contractor would be procured separately and the Joint venture would seize to exist. In his handover report Mr Vincent Seekono highlighted the issue of the 1million Dollars loan to the minister and advised that this money should be recovered before the contract is signed or an agreement on how it will be recovered from the payments that will be made to SBI during the execution of the work be put in place. However, when Mr Vicent Seekono left, the managers negotiated with SBI and the Corporation Secretary was paid $300000 and the loan was waived, contract signed and Workers lost this money.

11. Madam IGG, the tricks of making money at NSSF are more than enough. When Mr Vicent Seekono took over as the Board Chairperson, he found NSSF in the final process of granting a loan to National Farmers Association for constructing their head office at , due to the Temangalo issue, the new board under the leadership of Mr Vincent Seekono decided to stop all investment transactions where money had not yet been disbursed and this was one of them. However, the title for the land where National Farmers Association was going to build the building had already been transferred to the names of NSSF as part of the security for the loan. The Seekono Board instructed the Corporation Secretary to re transfer the title to the owners and close the deal. Four years down the road the title is still in the names of NSSF and still in custody of the Corporation Secretary (David Nambale) who is now working with some members of Farmers Association to take NSSF to court and earn money which they will share.

12. The waiving of contributions for Uganda Railways Corporation is another transaction where the top managers will take home over 1billion in kick backs. Uganda Railways Corporation was audited and found to have not contributed for its workers and a penalty plus interest charged against them brought the total bill to 25 billion. However, the Corporation Secretary had a meeting with a former minister and another minister who is still in cabinet and these two jointly own Crane chambers on Yusuf Lule Road. This meeting took place at Golf Course and they agreed to cover up this transaction and make some money by using their law firm called Crane Associates to collect this money and NSSF will pay a huge sum of money as recovery fees which they will share. In order to complete their transaction as if it is legal, they planned to bring the ministry of finance on board and Nambale who is a known friend of Aston Kajara brought him on board and the Minister wrote to NSSF requesting them to give a waiver which has reduced the figure to less than 4 billion. Surprisingly even the four billion will not come to NSSF because it will be paid to Crane Associates who will only remit 2.5 billion. The following should be noted:-

(a) URC has not disputed the figure after the audit was conducted

(b) URC has not failed to pay

(c) Why did they engage the services of a legal firm?

(d) Why can’t URC pay directly to NSSF?

(e) What is special about this transaction that it has to be handled by a law firm even when the employer has not disputed the figure and NSSF has not gone to court?

13. Madam IGG, it is well known that during the procurement process for the Pension Towers contractor, these Senior Managers illegally sneaked out documents of one bidder and took them to another bidder. The then Head of Procurement Mr. Ellias Biryabaho reported the matter to the Managing Director, investigations were sanctioned, and statements taken from the people who were involved, but the top managers stopped the Head of Audit who was conducting the investigations from publishing this report. It is sad that the Mr. Ellias Biryabaho was harassed, interdicted for reporting illegal movement of bids for some bidders and refusing to give out bidder’s information irregularly. The documents of the wining company were taken out and given to the company they were interested in but which had failed during evaluation, to try and look for the smallest error of which they would capitalize on and cancel the process so that the process can be restarted to give their company a chance to reorganize. (See attached documents where the Head of Procurement reported illegal movement of documents.( Appendix H). We understand that the top three managers held a meeting at a top hotel and invited one of the agents of the company they were supporting to attend and they forge a way forward. This agent who is a top business man in Kampala told them that having the documents will not help as long as the Head of Procurement (Mr. Ellias Biryabaho) and a lady Engineer whom we did not manage to get the names but who was heading the project are still in control, it will be difficult to turn around the process. The agent told them how he had tried to use some of the top guys in government to talk to the two people but in vain. He then informed them that if they cannot deliver, then the advance they had received should be refunded because the company is also putting him on pressure to deliver. He Corporation Secretary suggested that they should transfer the Head of Procurement to another position but they would need to convince the Chairperson of the board and bring him on board. He informed them that he had mentioned it to the Chairperson and the Chairperson agreed that for him at Shell he can transfer any one to any department regardless of his or her profession. This assignment was given to the Deputy Managing Director to convince the Chairperson that the Head of Procurement (Mr. Ellias Biryabaho) should be transferred to another position. They planned that in order to convince the Chairperson, the Deputy Managing Director should claim that the Corporation Secretary and the Managing Director had promised her money to stop fighting Head of Procurement, unknowingly, the Chairperson landed in the trap and sided with the Deputy Managing Director that the Head of Procurement should be transferred to another department.

The Deputy Managing Director after the meeting wrote to the Head of Procurement transferring him to a position that did not exist. To confirm that this was a planned move, the Managing Director who is the Accounting Officer and is supposed to be in charge did not question this move. In a period of two weeks the Head of Procurement was transferred to two different positions which did not even exist on the NSSF structure. He eventually resigned and left the organization.

A plan was hatched to neutralize and get the lady Engineer who was heading the Project out of the way, and they agreed that when her contract expires it should not be renewed and that they should propose to the board that an advisor on projects should be appointed to advise the board. During the investigations by the IGG on the procurement process of Pension Towers they informed the IGG that the board had decided to use a third party to handle big projects in order to stop influence peddling. It is on record that they had another meeting and agreed that the Managing Director should propose to the IGG that he does not mind the process being canceled and restarted and if the IGG Cancels then their preferred company would now get a chance to reorganize their documentation and rebid.

Madam IGG, some of your Directors should also be investigated. During the investigations on the procurement process of Pension Towers, the Deputy Managing Director visited one of the investigators called Kasirye three times in offices to guide on the preferred outcome of the investigations. The Deputy Managing Director was introduced to Kasirye by the Corporation Secretary who is a close friend of Kasirye since the time they were working together at your office. The relationship of Mr Kasirye and the Deputy Managing Director of NSSF has a hidden motive and this lady openly brags that even if anyone reports to your office nothing can be done because of her connection with you and Mr Kasirye.

14. Madam IGG, we are reliably informed that in July last year, after the Head of Procurement (Mr. Ellias Biryabaho) had reported the illegal movement of bid documents, the Corporation Secretary who had moved the books out, approached the Deputy Managing Director to try and cover him on the missing books and she accepted, they planned to go to the Minister of Finance without Byarugaba and claim that Byarugaba had a conflict of interest he is not declaring and that this would force Byarugaba to stop the investigations on the illegal movement of bidders information which he had sanctioned. The Deputy Managing Director, the Corporation Secretary in Byarugaba absence went to the Minister of Finance and the Deputy Managing Director put her claim on table. The minister requested them to try and sort out their issues internally. Our investigations indicate that Byarugaba’ Wife and the Mr. Ellias Biryabaho’ wife come from Rwanda and their fathers were cousins. The information we have obtained from the Human resource department of NSSF regarding the recruitment of Head of Procurement (Mr. Ellias Biryabaho) indicates that the advert was put in papers in November 2010, 10 candidates were shortlisted including Mr. Ellias Biryabaho and interviews were conducted in January where Mr. Mr. Ellias Biryabaho Scored 89 marks and was followed by Mr. Lawrence Tumuheirwe with 75 marks and Josephine Kaheru with 70marks. However, Byarugaba wanted the job to be taken by Josephine Kaheru but the people who were interviewing refused to change the marks. This did not go well between Byarugaba and the Head of Administration who was heading the panel. In the subsequent top management meeting Byarugaba proposed that the Job of Head of Administration be scrapped or when his current contract expires, the job should be put at a lower grade. Our investigations at the Institute of Procurement Professional of Uganda indicate that Mr. Ellias Biryabaho is a registered procurement professional with experience of more than ten years in this profession. Further investigations at the Chartered Institute of Procurement Professional website in UK lists him as a procurement professional that is at the Level of a Fellow. It also indicated that he was nominated together with Professor Benon Basheka of Uganda Management Institute and Lydia Babinaga of Crown Agents to compete for the position of representing Africa on the CIPS Committee and the position was taken by Professor Benon Basheka. It is rumored that Byarugaba was not comfortable having him as the Head of Procurement and when he tendered in his resignation, the position was advertised within two days of tendering in his resignation.

15. Madam IGG, we have information that some contracts are awarded totally disregarding procurement regulations and a case in point is the procurement of air conditioning system for one of the offices at Workers House which is clearly captured in the audit report of PPDA on NSSF. (See the report on the PPDA website) This contract was awarded by the Deputy Managing Director in her capacity disregarding all the technical advice and the structures that are supposed to award contracts as per the government of Uganda procurement regulations. She was advised on the process. However, she ignored the advice and later the Contracts Committee rejected the award that they cannot be used as rubber stamps and approve awards retrospectively (letters of award and contracts committee decision rejecting the award are attached.( Appendix I). To the surprise of the Contracts Committee, management went ahead and paid for the air conditioning equipment totally ignoring their decision. PPDA audited the Fund for procurements conducted in the financial year 2011- 2012 and the report we have accessed from the PPDA website clearly indicated that there is interference in procurement processes by the Deputy Managing Director (See attached part of the audit report indicating interference.( Appendix J). Despite all these anomalies, nothing has been done to stop the Deputy Managing Director from interfering in processes.

16. Madam IGG, some services of huge amounts have been rendered without contracts for more than 3 years and some senior managers pick money on monthly basis from these service providers. The case in point is the contract for security services for workers house and branch offices provided by SARACEN. This is a contract of more than 700 million per year and has been running for more than three years without a contract. To hide this transaction they decided not to seek clearance from the Solicitor General for this contract because this would expose their trick. We are reliably informed that the Deputy Managing Director receives 5million per month from this company. This is also one of the procurement processes that the PPDA Audit Report clearly points out interference. (See attached part of the audit report indicating interference. (Appendix K). When the Contracts Committee, Procurement Unit, Finance Department and Head of Administration opposed paying service providers who have no running contracts, a new advert was put in papers (see attached advert(Appendix L). However, the new service provider has not signed the contract and the beneficiaries of the original contract are working hard to cancel the process even after the Solicitor General cleared the contract for this new service provider. To date no contract has been signed and SARACEN has continued to provide services without a contract and the beneficiaries are still earning from this system. The best evaluated bidder Notice we have seen on the PPDA website shows that Security Group emerged the winner (See the notice for the best bidder downloaded from the PPDA website and clearance from Solicitor General (Appendix M). It is a requirement that any bidder to do business with NSSF must have paid their social contributions. However SARACEN has arrears of 1.2 billion but it is being pushed to take this business. One would wonder why these managers take all the trouble to protect this company if they are not beneficiaries.

17. Madam IGG, deadlines of bid submissions do not matter at NSSF as long as the big bosses have an interest in a company, the company of interest will bring a bid at their convenience which is totally against the procurement regulations of this country. A very good example is the bid for a service provider for conducting a due diligence on the two companies that had reached the final stage of bidding for the Pension Towers. The Procurement Unit rejected the late bid from PWC. However, the bid was forced in by the Deputy Managing Director (see attached correspondence instructing the procurement unit to receive the late bid (Appendix N).

18. Madam IGG, the cartel and interest in the Fund is not only internal, we are reliably informed that there is a group of people headed by a top business man in town who owns a top Casino, who have had several meeting to discuss and get a person they should front for the Job of Head of procurement in order to control all the procurement processes of the big projects that are in the pipeline. The meetings have been organized by David Nambale who is the Corporation Secretary of NSSF and a known friend of this business man. It should be noted that this business man is one of the local Agents of one of the Chinese company called CATIC that is fighting for the Pension Towers job but had failed at the evaluation stage. After this company failed to influence the first process, their Agenda turned to making sure that the process should be cancelled and restarted so that they can re-organize. However, another group of agents of CATIC is using the famous Tumusime and Kabega of the Alcon case, to go to court. (See communications of Tumusime and Kabega to NSSF (Appendix O) this group believes that they can use all the tricks to get this contract without re bidding. The same group has approached the Deputy Managing director to try and push for their preferred candidate.

19. Another deal in the offing which will freeze workers money is that of New forest project. New forest is a company that got a concession from National Forestry Authority to plant trees. This company is being fronted by one of the famous Journalists in town (Andrew Mwenda) who even organized a meeting between NSSF managers and the president on Tuesday 26th February 2013 to push for this deal. We are reliably informed that the team from NSSF met the president in Rwakitura and another meeting with the directors of this company followed on 28th February where they visited the forests they have planted and to agree on how to conclude the deal. Andrew Mwenda has a very huge commission if this deal goes through and has promised the Managers that he will never write any hostile article on NSSF as long as they are still there and will fight any negative publicity on their behalf. This company is not listed on the stock market and one wonders house NSSF can buy equity in this company when it is not listed.

20. Madam IGG, the top managers have got hints that their tricks of cheating are slowly but steadily being uncovered and they are now planning early extensions of their contracts before the public and the relevant institutions start their investigations. They are aware that it will be difficult to get extensions after they have been exposed. We are reliably informed that they had a meeting and agreed on how they will beat the system to be able to get their contracts renewed and continue with their agenda. This is how they plan to do it. They agreed that they should give themselves very high grades in appraisals and it is already under way. We are reliably informed that Byarugaba gave Nambale David an A+ in appraisals which also came with a bonus of 45million shillings at the end of the year. Their plan is to put the board in a tricky position because it would be looked at as bias if the board refused to renew a contract of a person who has obtained an A+ in appraisals. They intend to do it as fast as possible because Nambale contract expires in May and Byarugaba’ in August. The second trick they are planning is to list all the contracts of senior managers that expire between April 2013 to September2013 and request the board to approved them omnibus, after this is done, they intend to inform the minister that the board has already agreed to approve their contracts and for the statutory appointees the Minister will just endorse. We are reliably informed that money is exchanging hands from the Corporation Secretary to some people in Finance to try and push for him at the Minister’s place to make sure that his contract which expires in May this year is renewed and in turn he will give them lucrative deals at NSSF. In one of the meetings that took place at Kampala Casino, they set three strategies on how they should make sure that his contract is renewed.

1. The people who have received money at Finance should convince the minister to direct the Board but specifically the Chairperson to renew the Corporation Secretary’ contract and that one reason they should give is that he won the ALCON case.

2. If the first strategy fails they intend to use Hon Aston Kajara or Hon Kasaija to sign the contract for renewal and they should time when the full Minister is out of office. It should be noted that Hon Aston Kajara is a good friend of Corporation Secretary (David Nambale).

3. The third strategy they have set is to make sure that the Permanent Secretary / Secretary to Treasury who is also a Board Member at NSSF should not be consulted by the Minister on this matter.

21. Madam IGG, the Chairperson of the Board Mr Ivan Kyayonka should resign because he is now part of the system that is pushing for illegal transactions especially where he has an interest. It is very clear that he has conflict of interest in the Umeme deal and another deal where he picked two people and appointed them as board advisors and they are being paid workers money. The Chairperson picked Engineer Anania Mbabazi and Keith Kalwegira as board advisors on projects and Investments respectively. Reliable information we have received indicates that the two worked with Mr Ivan Kyayonka at Shell for a long time and they are personal friends, this was not declared. Secondly, Engineer Anania Mbabazi had applied for a job at NSSF for project management but failed interviews miserably, how can such a person who failed interviews advise on an area he failed? Mr Keith Kalwegira worked at NSSF as head of Investment for 3 months and resigned after he failed to convince Jamwa that the strategies he was proposing would work. How can these two people who failed before be appointed to advise the board on the same areas where they failed?

Secondly why would NSSF with an Investment department that has the best brains on the market need to appoint Board advisors on the same things that the Investment department is doing? Are they saying they do not trust their investment department?

Thirdly madam IGG, the top three managers (Managing Director, Deputy Managing Director, and Corporation Secretary) that sit on the Board should resign because of misleading the board on this move and flouting procedures. If the board wanted advisors they should have procured them in the right way because advisors are consultants and consultancy is a service that is supposed to be procured through a procurement process as per the Public Procurement Laws of Uganda. There was no procurement process conducted at all. This further confirms the conflict of interest we talked about before that surrounds this transaction. We are reliably informed that these Board Advisors are paid a lot of workers money as a retainer and some of them are already enjoying trips abroad on NSSF money with clear instructions from the Chairperson that they have to go for these trips. Our investigations at Entebbe Airport Immigration department indicate that Engineer Anania Mbabazi travelled to South Africa using ticket number TKT 0832889950383 that was paid for by NSSF at USD 2194 and was also paid Perdiem of a week to go to South Africa on instructions of the Board Chairperson.

22. Madam IGG, we have reliable information that there is another deal in the pipeline where the top three managers (Managing Director, Deputy Managing Director, and Corporation Secretary) are going to bag 10billion if this deal is not stopped. This is about the Lubowa land purportedly owned by Uganda Company Holdings ltd and its sister company MITCHELL COTTS Uganda. NSSF is planning to build some houses on the piece of land that they own in the same area and SBI is already drawing up a master plan and the designs for houses.

The Mitchell Cotts land which is approximately 36.5 acres is surrounded by the NSSF land. The Corporation Secretary approached some people and gave them a proposal that they should propose to NSSF that this land belongs to them and it is on sale, we can authoritatively inform you that the Corporation Secretary had a meeting with SBI and instructed them that in their feasibility study and the environmental impact assessment reports and master plan, they should advise that this land should be bought so that they enhance the green belt. It should be noted that the biggest chuck of this land is a swamp and cannot be built on. SBI being an obedient servant adhered to the instructions and in their reports they proposed to NSSF that they should buy this piece of land to enhance the green belt, but meanwhile the guys the Corporation Secretary had contacted have already submitted a proposal to sale this land to NSSF at 500m per acre and the total quotation stands at around 18billion. A meeting for board of directors was hurriedly organized around third week of March 2013 and the SBI report was presented to the Board members. However, no firm decision was reached and the deal is being pushed quietly by the Corporation Secretary (David Namable) to make sure that it goes through. Fortunately, Uganda Company Holdings ltd and its sister company MITCHELL COTTS Uganda got wind of it and have now put a Caveat Emptor on the land. (See advert in the News paper of 16th April 2013, and Monitor news papers of the same date. copy attached).According to our sources that attended one meeting between Nambale on the side of NSSF and the fake owners of the land, they agreed that the sharing arrangement was going to be 10billion to NSSF Managers and 8 billion to be taken by the fake owners since they would never be traced. Nambale defended his proposal by telling them that for them they have nothing to lose since they will never be traced therefore 8billion is good money for them. He informed them that his contract will be renewed soon and he will make sure that NSSF losses the case or requests court to settle the matter out of court when the right full owners take NSSF to court. He indicated to the meeting that his bosses wanted the sharing to be as follows.

1. Managing Director 3billion

2. Deputy Managing Director 1.5billion

3. Nambale David 2.5 Billion (for being the front person and the risks involved)

4. Some other people who matter 2billion

The balance of one billion is planned to be used to facilitate the transaction and get the necessary approvals from the relevant bodies and institutions.

23. Madam we have information that they are now planning to pay themselves huge amount of money and they are planning to call it bonus for winning the ALCON case.

24. Madam IGG, the top managers portray a rosy picture on top and in the media when internally the infighting, mistrust and blackmail among themselves has gone beyond controllable levels and there is nothing positive that the workers will benefit if the three managers are still heading this institution. Every day that passes each faction plans for the other for example there was a meeting to plan for how Nambale’ contract should be renewed and after they have succeeded then they should set a committee to make sure that Byarugaba’ contracts is not renewed. There is also another group headed by the Deputy Managing Director that is trying to make sure that Byarugaba does not come back and that will give them a case to take the top job. Each faction is trying to lobby board members to be on their side. We Concerned Citizens hope this information will be investigated and the culprits brought to book before the workers of this country lose their hard earned savings. We are also demanding the stepping aside of the top three managers and the Chairperson during the time for investigations otherwise they will tamper with the investigations if they stay in office.

Cc: Speaker of Parliament

Hon Prime Minister

Minister of Finance

Minister for Presidency.

Minister of ethics and Integrity

Members of Parliament (Committee on Statutory Bodies)

Leader of Opposition

Director of CIID Uganda Police Force

Members of NSSF Board

Workers Unions

Executive Director PPDA.