NSSF: Finance minister pins Amongi on ‘irregular’ Shs 6bn request

The minister of Finance Matia Kasaija says it was irregular for the minister of Gender, Labour and Social Development, Betty Amongi to request Shs 6 billion to supervise activities of the National Social Security Fund (NSSF).

Kasaija was on Thursday appearing before the select committee probing NSSF. The controversial request was made through a letter from Amongi to the NSSF board chairman Peter Kimbowa and it proposed to facilitate activities to grow the fund’s savers numbers.

NSSF is supervised by the ministries of Finance and Gender as per the recent amendment of the NSSF Act by parliament. Kasaija said that it is irregular for a ministry supervising the fund to request money from it because the same ministry is provided with a budget of its own through the treasury.

“Really to me, it is irregular because a ministry that is supervising that body should not ask it for money to run the affairs of the ministry even if those affairs are related to the fund. They should request money from the treasury, we give them the money from the treasury because you see this money is not our money. Please, let’s be very clear. This money is workers’ money, the best, if law allowed me to tax, then I would tax them. But the law doesn’t allow me to. But for you really as a minister with your full budget to start going and saying you institution ABCD give me money – even these established institutions we never ask them to give us money, we never,” said Kasaija. 

Kasaija added that the matter of Shs 6 billion came to his attention and he disagreed with it on principle. 

“I disagreed with the principle because my understanding is like for example, I have been running the show at ministry of Finance, am short of money for sure but I would never ask the fund to give me money because those are not funds for public expenditure, yes. If I want money, then I go to my treasurer,” added Kasaija. 

Reports indicate that Amongi declined to re-appoint the former NSSF managing director, Richard Byarugaba after the fund failed to approve the Shs 6 billion request. Kasaija also told MPs that he’s had no problem with Byarugaba’s reign at NSSF, saying that he always consulted or summoned the former MD over affairs of the fund.  

Patrick Ocailap, secretary to treasury also confirmed to the committee that the Shs 6 billion request by Amongi was not approved in the NSSF budget.

“We sent the budget to her [Amongi] for approval. In considering the approval budget that is where she gave that counter-proposal that we pick [money] from here and put there…we have never considered approval of that money and I made my point very clear when the matter came to the board. In the treasury where I sit, I did not approve that money, it is irregular,” said Ocailap.  

Appearing before the select committee, Amongi said that her decision to request for Shs 6 billion was guided by Section 29 of the NSSF Act. She said that the law mandates her to amend the NSSF budget. Amongi explained that the law provides that the board may, with the sanction of the minister make a disbursement notwithstanding that the disbursement is not provided for in any budget.

This statement prompted a query from Buwamba County MP Richard Gafabusa who questioned how the Shs 6 billion was arrived at. In response, Amongi said that she requested for the funds after she identified that the fund’s current financial year 2022/2023 budget did not provide for activities to implement the amended NSSF Act which introduced voluntary contributions. 

“And during that meeting which was attended by Richard Byarugaba, the deputy and two officers from finance department of NSSF, we discussed this budget which he’d already articulated and accommodated the issues I had raised. If you look at the budget which he’s put here in his letter, it is coming to over Shs 10 billion which was there. So in that meeting, we discussed thoroughly and said since we’re now going to incorporate these activities articulated in my letter, articulated by Hon. Kasaija, articulated in your letter and in my letter, I would now request that while approving the budget, you highlight it in your letter and they gave me a figure. That figure was not Shs 6 billion, if I recall well that figure was Shs 5 billion,” said Amongi. 

Amongi said that the board invited her to a meeting on November 25, 2022, and her request was part of the agenda.

“What I had objected earlier was Shs 400 billion first under the carpet. So they came and explained to me and I was not satisfied. So that is why on page two of the letter, I said I have reviewed the budget proposal for FY 2022/23 and therefore guide as follows. Under real estate component, implementation of strategic land purchase totals to Shs 400 million differed at the moment pending a due diligence report because I asked them for a due diligence report. They didn’t give me, I asked them for titles of the land, they did not give me. I asked for CGP report, they did not give me. They just wanted me to put Shs 400 billion. I said I’m not approving until you give me a due diligence report,” said Amongi.

The select committee chairperson Mwine Mpaka asked the permanent secretary of ministry of Gender Aggrey Kibenge how the Shs 6 billion was developed. Kibenge said that the money was originated in a meeting between the minister and NSSF management, including Byarugaba.