NSSF wants BOU to provide documents of Central bank Staff

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Government Authorities at the National Social Security Fund (NSSF) want Bank of Uganda (BoU) staff records that have demanded the “contentious dates of birth” and copies of their national identity cards for verification.

Now the latest reaching out desk is that the NSSF wants Bank of Uganda’s staff records to find Shs1.6b that was paid to unidentified Bank of Uganda staff in August 2016 and this in January.

According to Mr. Ralph Bakashabaruhanga, the Bank of Uganda director of pension administration department said that the Fund’s reluctance to issue the Central Bank with the mandatory clearance certificate. He also added saying that Bank of Uganda officials wanted the clearance certificates to enable their employees in the legal department headed to have their certificates renewed.

According to the NSSF ACT number 222  requires Bank of Uganda and other employers applying for a business license to produce a clearance certificate of up-to-date payments of due contributions issued by the managing director.

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Referring to BoU’s application for clearance certificate, a statutory requirement under NSSF Act (Chapter 222), Mr Rwamatungi’s letter titled: “Application for an NSSF clearance certificate”, reads: “We understand the urgency of the situation, however, you will appreciate that we have to follow the due process of assessing an employer’s records to ensure compliance with NSSF, before we can issue out a clearance certificate.”

The law

Section 7 (5) of NSSF Act (Chapter 222) requires BoU and other employers applying for a business licence to produce a clearance certificate of up-to-date payments of due contributions issued by the managing director. And for the purposes of sub-section (5), business licence includes practicing certificate for any profession.

Section 7 (7) of the same Act reads: “No employer of a class or description specified in an order made under subsection (1)(b) shall leave or attempt to leave Uganda, whether temporarily or permanently, unless he or she is in possession of a clearance certificate issued by the managing director.”

Mr Rwamatungi also indicated that NSSF was only availed with the appropriate records from BoU for assessment of the period (August 2018-January 2019) on March 1, and therefore, needed time to go through the staff records and other supporting documents.

Providing specifics on the discrepancy, Mr Rwamatungi wrote: “Our subsequent communication to BoU pointed out the issue of staff who are below 55 years of age as per their NSSF registration details, and who are above 55 years as per BoU records.”

 

Next step

To determine whether there was no foul play, sources at BoU told Daily Monitor that the authorities at NSSF have since instructed Mr Bakashabaruhanga, through his boss, the Governor [Mr Emmanuel Tumusiime-Mutebile] to submit National Identify cards for the affected BoU staff to NSSF to “verify their correct age with the National Identification and Registration Authority (NIRA)”.

NSSF also pointed out other variances discovered for the six months assessed, which BoU’s finance department/ accounts team could not account for. The earnings unaccounted for stand at Shs1.6b, which created NSSF liability to a tune of Shs246m. BoU officials did not remit this money to NSSF as the law requires.

Previous probe

In November last year, the Inspector General of Government, Ms Irene Mulyagonja, also appointed a team of 200 officers to probe into the wealth of 100 BoU officials at the time when Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises, was concluding a three-month inquiry into the irregularities in the closure of seven commercial banks.

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