After NSSF court ruling, Byarugaba unveils plan B

Richard Byarugaba, the former managing director of the National Social Security Fund (NSSF), has embarked on a new academic pursuit aimed at enhancing his proficiency in the investment sector.

Byarugaba’s decision to pursue further education stems from a series of events involving Betty Amongi, the minister of Gender, Labour and Social Development.

Byarugaba’s departure from his previous role was precipitated by Amongi’s choice not to extend his contract. The rift between the two emerged following Byarugaba’s reluctance to allocate a sum of Shs 6 billion towards the minister’s proposed initiatives aimed at bolstering NSSF’s efforts in ensuring employer contribution compliance and augmenting contributions.

Amongi claimed that issues such as corruption, collusion with contractors, and indiscipline, among other allegations raised by Gen Salim Saleh during his meeting with the NSSF top brass at Kapeeka on June 12, 2022, had constrained her. However, a parallel group, comprising disgruntled NSSF officials, had already earmarked Byarugaba’s deputy, Patrick Ayota, to assume leadership.

“I am currently enrolled in school, studying to sit for the Level II Chartered Financial Analyst (CFA) exam. It is renowned as the foremost investment management qualification globally, and I anticipate completing it within the next few weeks,” Byarugaba disclosed.

The CFA program is tailored to provide students with expertise and practical skills in investment analysis essential for career advancement. Consisting of three parts, the program assesses proficiency in investment tools, asset valuation, portfolio management, and wealth planning. It is typically pursued by individuals with backgrounds in finance, accounting, economics, or business.

Level one and two CFA exams typically require between five and seven weeks of dedicated study, including completion of the Practical Skills Module, while level three exams generally span between six and eight weeks. The registration fee for each level exam amounts to $1600 (approximately Shs 6 million).

Upon completion of the program, application, and acceptance by the CFA Institute, individuals earn the right to use the prestigious CFA designation. CFA charter holders are equipped to assume senior and executive roles in various fields such as investment management, risk management, and asset management.

As described by Dr Adam Hayes, a CFA charter holder, the Chartered Financial Analyst (CFA) designation holds global recognition and is bestowed by the CFA Institute.

From its inception in 1963 through November 2023, over 3.7 million candidates have undertaken the CFA exam. Historically, the overall pass rate has stood at 45 per cent. Over the period spanning 2014 to 2023, the 10-year average pass rate was 43 percent. The sustained pass rate below 50 per cent in recent decades underscores the rigorous nature of the CFA Charter, rendering it one of the most challenging financial certifications to attain.

“To attain charter holder status, candidates must successfully pass three challenging exams, hold a bachelor’s degree, and possess a minimum of 4,000 hours of relevant professional experience accumulated over at least three years. Achieving success in the CFA Programme exams demands considerable discipline and a significant amount of dedicated study,” he emphasized.

Byarugaba’s court petition to retain office

Last week, the High court dismissed Richard Byarugaba’s case wherein he contested Betty Amongi’s decision not to renew his contract as the former managing director of the National Social Security Fund (NSSF).

In August 2023, Byarugaba filed a petition with the court, seeking orders compelling Amongi to fulfill her statutory obligations and reinstate him as the managing director of NSSF, in line with the board’s recommendation.

He argued that Patrick Ayota, the incumbent managing director of NSSF, was unsuitable to lead the fund. Byarugaba had served as the NSSF MD from August 2010 to November 30, 2022, overseeing the growth of the fund to Shs 17 trillion.

Byarugaba observed that before the completion of his second contract term, Amongi sought to prematurely terminate it, citing the applicant’s supposed mandatory retirement upon reaching the age of 60 years. However, intervention by the attorney general facilitated the completion of the second term.

In his verdict, Justice Musa Ssekaana remarked that the applicant failed to specifically demonstrate how his legitimate expectation was thwarted. While acknowledging the existence of correspondence from various offices, such as the attorney general’s opinion regarding the applicant’s continued tenure as managing director beyond the age of 60, these communications should not impede the minister’s discretion to decide whether to reappoint the applicant or reject the recommendation.

“The applicant’s so-called legitimate expectation amounted to little more than a wish, and could not serve as a basis for demanding a hearing before the Minister’s decision to reject his reappointment,” justice Ssekaana ruled.

He further stated that Amongi did not violate any legitimate expectation of the applicant, emphasizing that the decision not to reappoint him constituted an exercise of the minister’s discretion. He further ruled that the court cannot nullify the appointment of Patrick Ayota, which was made based on the board’s recommendation.

Such a decision would violate the principle of fairness and would amount to condemning the board unheard regarding their decision. Therefore, the application fails and is dismissed with no order as to costs.

Interviewed after the court ruling, Byarugaba stated, “We had our day in court. We thank you for hearing us out. We accept the ruling. We will not appeal the matter.”

“We express gratitude to the appointing authority, the president, for giving us the opportunity to serve the nation as managing director of NSSF for over a decade. We did our best, and there is evidence to show significant progress in the fund. Posterity will hopefully judge us accordingly,” he concluded.

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